$1 Billion Incentives to be Provided to Semiconductor Manufacturers: Report

To upscale more local production and reduce imports, the Indian government is offering semiconductor manufacturers incentives worth up to $1 billion in cash

By March 31st, 2021 AT 4:00 PM


To upscale more local production and reduce imports, the Indian government is offering semiconductor manufacturers incentives worth up to $1 billion in cash.

According to a Reuters report, a senior government official said that India wants chipset makers to set up their manufacturing facilities within the country.

He said that the government would ‘promise’ to be a buyer, and there will also be private companies that will be looking to purchase the chipsets for their devices. The arrival of semiconductor manufacturers in India would ensure no more chip shortages in the country.

During the last few months, smartphone makers in India have faced a severe chipset supply from Qualcomm and MediaTek. Governments worldwide are trying to get semiconductor manufacturers to set up their factories locally in their nation to save themselves from any future chip shortage.

Indian Government’s Failed Attempts to Call Chipset Makers in the Country

This is not the first time the Indian government is calling the chipset makers into the country. Previous attempts from the government have failed due to several reasons.

The semiconductor manufacturers need a stable power supply, a solid infrastructure, good planning for the distribution, and more to set up factories in any place. India has lacked providing value to these companies in all the cases.

This is yet another attempt by the Indian government to call chipset makers into the country. The $1 billion cash benefit to the companies will be provided in several forms, which is yet to be decided, the official confirmed.

If India can successfully call semiconductor manufacturers to the country, it will complement the government’s Production Linked Incentive (PLI) scheme to enhance the local production in India.

IT companies from all over the world are incentivised under the PLI scheme. Tech giants such as Apple and Samsung have already started manufacturing their products locally in India to sell within the country and export to other nations.

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

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