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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
The Indian government has in the past shown interest in getting major global tech companies to set up their semiconductor fabrication facilities in India. But so far, the move has been largely unsuccessful. Now, the government has invited these particular companies again and is open to giving them subsidies and other advantages. This move from the government comes after there was a shortage of semiconductor chips reported by the Indian smartphone manufacturers. If companies agree and move their production facilities of semiconductor fabrication to India, it would help the ‘Make in India’ initiative of the government hugely. Adding to that, it would also benefit the Indian smartphone manufacturer since they will be able to get the chips for a much cheaper cost — more details on the story ahead.
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PLI Scheme of Government Might Attract Companies to Come to India
The Indian government introduced a Production-linked Incentive (PLI) scheme to give companies incentives on their incremental sales who manufacture their products in India. This is what will be different this time, along with multiple other things for foreign companies.
It is worthy to note that the last time the government invited foreign semiconductor companies to India for manufacturing locally, it offered the companies 40% subsidies. Even after this, the companies didn’t come to India.
But this around, multiple thins are different. First is the above mentioned PLI scheme, but adding to that, the production of electronics has more than doubled in the last few years, which promises a high demand for semiconductor chips.
