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India Approves $10bn Plan to Attract Chip and Display Makers

India approved a $10-billion plan to attract semiconductor fab makers and display manufacturers as it strives to become an electronics hub.


A worker is seen at an iPhone factory in China. File photo: Reuters.

 

India approved a $10 billion incentive plan to attract semiconductor fabricators and display manufacturers as part of efforts to establish itself as a global electronics production hub, its technology minister said on Wednesday.

Israel’s Tower Semiconductor, Apple’s contract manufacturer Foxconn and a Singapore-based consortium have all shown interest in setting up semiconductor fabrication units in India, a government source said.

Vedanta Group was also keen to set up a display fabrication plant in India, the source added.

New Delhi also approved a design linked incentive (DLI) plan to encourage 100 local companies in semiconductor design for integrated circuits and chipsets, technology minister Ashwini Vaishnaw told a news briefing.

“…Prime minister (Narendra Modi) has taken a historic decision today that will help develop the complete semiconductor ecosystem – from the design of semiconductor chips to their fabrication, packing and testing – in the country,” he said.

India, the world’s second-biggest smartphone maker, has announced the plan at a time when automakers and tech companies are grappling with a global semiconductor shortage.

Tata Group, one of India‘s biggest conglomerates, is also venturing into the business and is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit.

 

• Reuters with additional editing by Jim Pollard

 


 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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