India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country
Indiais looking to woo semiconductor players such as Intel, TSMCand GlobalFoundries.
- The government is currently in talks with these companies to set up local operations.
- The government had announced a production-linked incentive (PLI) scheme worth ₹76,000 crore in 2021.
AdvertisementIn a bid to push the semiconductor industry, which is in nascent stages, the Indian government is wooing global chipmakers such as Intel, and Taiwan Semiconductor Manufacturing Co. and GlobalFoundries.
According to a report by Bloomberg News, the government is currently in talks with these companies to set up local operations, thereby bringing high-tech manufacturing to the country.
Semiconductor chipsets are used across a wide range of consumer electronics like smartphones, laptops, computers, cars, smart home appliances and many other things.
India’s ₹76,000 semiconductor crore push
In December 2021, the Indian government announced a production-linked incentive (PLI) scheme worth ₹76,000 crore (around $10 billion) for establishing a semiconductor ecosystem in the country. As part of the scheme, the government has offered to cover up to 50% of the project cost.
“Most of the pitches to these big companies, I’m making myself. We’re meeting the CEOs, talking to them, making presentations,” Rajeev Chandrasekhar, minister of state for electronics and information technology said in an interview to Bloomberg News.
Chandrasekhar added that states in India are competing to attract semiconductor giants. “They are all open to sitting down and negotiating what other incentives, apart from land, they can offer investors. It is a keenly contested, keenly sought-after investment by states,” he added.
While a venture between Vedanta Group and Foxconn Technology Group has shown interest in setting up semiconductor foundries in the country, other companies are cautious due to issues such as power outages and infrastructure in the country.
India achieved success in its aim of bringing smartphone manufacturing into the country thanks to the incentives offered by the government and the imposition of taxes on imported devices. However, setting up a semiconductor industry requires substantial investments and the government intends to only use incentives to attract the big players.
Glad to have met you @PGelsinger! We had excellent discussions on subjects relating to tech, research and innovatio… https://t.co/nHjaU33Sw1— Narendra Modi (@narendramodi) 1649264685000
Earlier this month, Intel chief Pat Gelsinger met with prime minister Narendra Modi. According to a Business Today report, the two discussed India’s PLI scheme for the semiconductor industry.
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