TECH

India wants to attract semiconductor and screen manufacturers

India has passed a $10 billion subsidy plan that plans to attract semiconductor and screen makers to the country, the country's technology minister said on Wednesday. This is yet another effort by the Indian authorities, demonstrating their desire to make the country a world center for electronics production.

Under the plan, the Indian government will provide financial support of up to 50% of the project cost to monitor and semiconductor makers that will establish production in the country. Indian government sources say Israel's Tower Semiconductor, Taiwan's Foxconn and an unnamed Singapore-based consortium have already expressed interest in building chip factories in the country, and the Vedanta Group plans to launch a monitor factory.

India finds itself at an opportune moment for such a proposal, as many companies seek to diversify their production due to the ongoing trade war between the US and China. This geopolitical situation is fertile ground for the rapid development of electronics manufacturing in India. The country's plan is also being implemented at a time when automakers and technology companies around the world face a global shortage of chips.

India's technology minister said the new plan will create a complete domestic semiconductor ecosystem, from chip design to manufacturing, packaging and testing. The government's expectation is that the new program will create around 35 thousand well-paid jobs, around 100 thousand vacancies indirectly related to the semiconductor industry and attract investments in the country in the order of US$ 8.8 billion.

Among other things, the Indian government has offered about $30 billion in incentives to convince the world's biggest electronics makers to open stores in the country. The government's efforts have already helped India become the world's second-largest smartphone maker, second only to China. It also helped the country secure investment commitments from Foxconn, Wistron and Pegatron, Apple's three main manufacturing partners.

Last month, it learned that Tata Group, one of India's largest conglomerates, will enter the semiconductor business and is in talks with three states for an investment of around $300 million to set up a manufacturing and testing plant. of microcircuits.

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