India to make investment worth $10 billion to lure domestic chipmakers

India's technology minister announced on Wednesday that the country had authorised a $10 billion incentive scheme to recruit semiconductor fabricators and display manufacturers as part of its attempts to establish itself as a worldwide electronics production hub.

According to sources, Tower Semiconductor of Israel, Apple's contract manufacturer Foxconn, and a Singapore-based consortium were all interested in expanding semiconductor fabrication facilities in India. The Vedanta Group was also interested in establishing a display fabrication unit in India.

The technology minister Ashwini Vaishnaw has also authorised a design linked incentive (DLI) scheme to assist 100 local enterprises in semiconductor design for integrated circuits and chipsets. He stated, "Prime minister (Narendra Modi) has taken a historic decision today that will help develop the complete semiconductor ecosystem -- from the design of semiconductor chips to their fabrication, packing and testing -- in the country."

India, the world's second-largest smartphone manufacturer, unveiled the proposal when automakers and IT firms dealt with a global chip shortage.

One of India's largest conglomerates, the Tata Group, is also getting into the sector and talks with three states to invest up to $300 million in a semiconductor manufacturing and testing facility.

source: techgig