India plans to spend $10 billion to attract global chipmaker Hon Hai interested?

Source: Reuters

India's science and technology minister said on Wednesday that It has approved a $10 billion incentive program to attract semiconductor and display manufacturers as part of India's further efforts to build a global electronics production hub.

According to Reuters, the Indian government said in a statement that it would provide financial support of up to 50% of the project cost to eligible display and semiconductor manufacturers. "The program will usher in a new era of electronics manufacturing by providing globally competitive incentives for companies in the semiconductor, display manufacturing and design sectors."

A government source told Reuters that Israel's Tower Semiconductor, Taiwan's Hon Hai and a consortium in Singapore all expressed interest in building a chip factory in India, while the Vedanta Group was eager to build a display factory in India.

Tower Semiconductor, Hon Hai and Wei DanTa Resource Group did not immediately respond to Reuters' request for comment.

As U.S.-China trade frictions persist, some companies are seeking to diversify their manufacturing bases outside of China, while automakers and tech companies around the world are grappling with the global chip shortage. Encouraging semiconductor manufacturing is a sign that India is trying to move up the electronics value chain.

New Delhi has also approved an incentive program to support 100 local companies working on integrated circuit and chipset design. Indian Technology Minister Ashwini Vaishnaw said at a news conference that the plan would help develop "the complete semiconductor ecosystem – from the design of semiconductor chips to its manufacturing, packaging and testing in India".

(Proofreading/Holly)