India will become a supplier of semiconductor chips! 76000 crore package announced, three companies ready

The central government has made a big announcement to establish the country as a global electronics production hub. Technology Minister Ashwini Vaishnav said on Wednesday that India has approved a $10 billion (about Rs 76,090 crore) incentive scheme to attract semiconductor and display manufacturers. The government said that under this scheme, it would provide financial assistance to display and semiconductor fabricators up to 50 per cent of their project cost. A government source told Reuters that Israel’s Tower Semiconductor, Taiwan’s Foxconn Foxconn and a Singapore-based company have shown interest in setting up a chip factory in India, while Vedanta Group was keen to set up a display plant.

Tower, Foxconn and Vedanta are yet to respond to requests for comments.

The government has said that this program will usher in a new era in the manufacturing of electronics by offering a global incentive package to companies in semiconductor and display manufacturing as well as design.

This program has come at a time when due to the ongoing trade war between Washington and Beijing, some companies are trying to expand their manufacturing base in other countries and in view of this, India is trying to advance the electronics value chain. Used to be.

The government’s plan to encourage semiconductor manufacturing comes at a time when automobile and tech companies across the world are grappling with chip shortages. The government has also approved an incentive scheme to support 100 local firms working on integrated circuit and chipset design.

Minister Ashwini Vaishnav said that this scheme will help the ‘entire semiconductor ecosystem’.

The government said that it expects the scheme to create around 35,000 high quality positions, create one lakh in direct jobs and attract investment of Rs 1,67,000 crore. The government has offered incentives worth $30 billion (approximately Rs 2,28,280 crore) to woo some of the world’s largest electronics manufacturers to boost the domestic industry.

This has helped make India the world’s second largest smartphone maker after China and win investment commitments from Foxconn, Wistron and Pegatron. It is worth noting that these three companies make parts for Apple.