Indian government officials said on the 15th that India has approved a $10 billion incentive plan aimed at attracting global semiconductor and display manufacturers to build factories in India and build India into a global electronic product production center. Under the plan, the Indian government will provide financial support of up to 50 percent of the project cost to qualified display and semiconductor manufacturers, which will usher in a new era of electronics manufacturing, the Indian government said in a statement.
Indian government sources told Reuters that Israel's high-tower semiconductors, Taiwan's Foxconn and a consortium in Singapore have all expressed interest in building chip factories in India. According to Indian media reports, the Indian government has also approved another semiconductor industry incentive plan to support 100 local semiconductor design companies to engage in integrated circuit and chipset design. The program is expected to create about 35,000 high-quality jobs, 100,000 indirect jobs, and attract investment worth about $8.8 billion.
Foxconn factory infographic
New Delhi Television quoted Guru Raj, managing director of Optimus Electronics Inc. of India, as saying: "The government's plan will help advanced technology, more jobs and investment into India, and also help cut the cost of expensive technology imports." Previously, the Indian government has provided about $30 billion in incentives aimed at attracting some of the world's largest electronics manufacturers to set up factories in India. The move has helped India become the world's second-largest smartphone manufacturer after China. It also helped India win investment commitments from Foxconn, Wistron and Pegatron, all of which are Apple's top contract makers. Tata Group, one of India's largest conglomerates, is also said to be entering the semiconductor industry and is in talks with three states to invest $300 million to set up a chip assembly and testing division. Gartner, chief research analyst at market research firm Gartner, said the semiconductor shortage has affected the production of almost all industries around the world, and the Indian government announced the policy at the right time. If we can attract some foundries to set up factories in India, it will be a big step to promote India's semiconductor autonomy.
India's "Business Standard" previously analyzed the prospects of foreign companies investing in the Indian semiconductor industry, saying that for more than two decades, India has been looking forward to attracting semiconductor manufacturing giants to build factories in India and embark on the road to becoming a chip power, but India's dream has never happened.
Some companies in Taiwan are said to be preparing to actively cooperate with investments in India. The Business Standard analysis believes that the result is likely to be that companies that set up chip manufacturing plants in India will encounter a similar supporting environment chaos as they did more than two decades ago. According to the report, a stable and reliable power supply is the most critical element of semiconductor production, because the processing process is very delicate, and a very short period of power outage or voltage instability can lead to downtime, but India has many problems in power supply. Other obstacles are adequate water supplies, transport infrastructure, and mature workers. Some analysts said that India has a large number of chip design practitioners, but there is a shortage of programmers and is not good at operating chip factories.
Source: World Wide Web