India approves $13.3 billion for fresh semiconductor push
Companies involved in the manufacturing and R&D of the machines and manufacturing of materials, chemicals and gases that are essential for manufacturing semiconductors will be incentivized.
India's cabinet has approved the expansion of a key semiconductor programme with fresh capital of INR 1.28 trillion (about USD 13.3 billion), according to a report by Reuters.
Semicon 2.0 aims to develop IPs, designs of chips and systems. Companies involved in the manufacturing and R&D of the machines and manufacturing of materials, chemicals and gases that are essential for manufacturing semiconductors will be incentivized, the government said in a press release.
Efforts will be made to attract more manufacturers to come to India and set up fabs to manufacture chips. This will include silicon fabs, compound semiconductor fabs, discrete component fabs, and display fabs.
The ATMP/OSAT industry will be strengthened, and there will be more focus on developing advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India, the government said.
About five years ago, India had unveiled a USD 10 billion incentive plan to establish the country as a global electronics production hub. So far India has approved 12 manufacturing units and 24 semiconductor design projects under the 2021 incentive plan, the Reuters report said.
