Home Industry News India Set to Announce its First Semiconductor Fab

India Set to Announce its First Semiconductor Fab


In the following weeks, India is scheduled to reveal its first semiconductor production plant as the country strives to become more self-sufficient in chip supply in the aftermath of pandemic supply chain disruptions and continued US semiconductor restrictions to China.

According to an Indian IT Minister, the country is well-positioned to create a robust chip sector in the next three to four years due to “friendly policies” and the government’s desire to strengthen its manufacturing ecosystem.

Three electronics companies¬†compete for financial assistance under India’s $10 billion incentive program and await official approval to establish semiconductor fabrication units.

India to reduce its reliance on chip imports.

India can minimize its reliance on imports and strengthen its capacity to resist global supply chain disruptions by boosting local production, which can also lead to more work opportunities and economic growth.

Although the three companies are vying for incentives, only one business will likely obtain money.

Global chipmakers have been given incentives.

In the face of competition from China, Taiwan, and South Korea, India is giving various financial and other incentives, including infrastructure development and streamlined regulations, to entice global businesses to create semiconductor fabs in the nation.

According to the Ministry of Electronics and Information Technology, India would provide financial assistance equal to 50% of the cost of a fab building project “to applicants who are found suitable and have the technology and competence to execute such highly capital and resource demanding projects.”

“The Government of India will collaborate closely with state governments to establish High-Tech Clusters with the necessary infrastructure in terms of land, semiconductor grade water, high quality power, logistics, and research ecosystem to approve applications for the establishment of at least two greenfield Semiconductor Fabs and two Display Fabs in the country,” the statement added.

The India Semiconductor Initiative was established last year to promote long-term strategy for establishing a sustainable semiconductor and display ecosystem. Its mandate is to collaborate with other government agencies to guarantee the effective implementation of the country’s semiconductor initiatives.

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