India is offering more than $1 billion in cash to each semiconductor company that sets up manufacturing units in the country, according to Reuters. The lure is part of the Asian country’s plan to build on its smartphone assembly industry and strengthen its electronics supply chain.
Indian PM Narendra Modi’s “Make in India” drive has helped turn the country into the world’s second-biggest mobile manufacturer after China.
India is assuring that the government will be a buyer and mandates will be set up in the private market for companies to buy locally made chips.
New Delhi will also offer companies concessions, including waivers on custom duty, research, and development expenses as interest free loans
India also seeks to establish reliable suppliers for its electronics and telecom industry to cut dependence on China following last year’s border skirmishes.
Locally made chips will be designated as “trusted sources” and can be used in products ranging from CCTV cameras to 5G equipment.
India has in the past tried to woo semiconductor players but firms were deterred by wobbly infrastructure, unstable power supply, bureaucracy and poor planning.
Indian government estimates it would cost about $5-$7 billion to set up a chip fabrication unit in the country and take 2-3 years after all the approvals are in place.
