Govt Invites Intel, TSMC & Others With Rs 76,000 Crore Incentives For Making Semiconductors In India

•  The Indian government is currently holding conversations with Intel, and Taiwan Semiconductor Manufacturing Co. and GlobalFoundries to set up local operations and thus bringing high-tech manufacturing to India.
• The Indian government has announced a production-linked incentive (PLI) scheme worth ?76,000 crore for setting up a semiconductor ecosystem in the country.

In an attempt to push the semiconductor industry, which is in its early stages, the Indian government is trying to woo global chipmakers such as Intel, and Taiwan Semiconductor Manufacturing Co. and GlobalFoundries.

As per a report, the government is currently holding conversations with these companies to set up local operations and thus bringing high-tech manufacturing to the country.

Semiconductor chipsets are used in many consumer electronics like smartphones, laptops, computers, cars, smart home appliances and many other devices.

India’s ?76,000 semiconductor crore push

In December 2021, the Indian government announced a production-linked incentive (PLI) scheme worth ?76,000 crore which is approximately $10 billion for setting up a semiconductor ecosystem in the country. Under 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 stated in an interview.

Chandrasekhar added that various states in India are competing to woo 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. A venture between Vedanta Group and Foxconn Technology Group has seemed interested in building semiconductor foundries in India, other companies are guarded due to issues such as power outages and lack of infrastructure in India.

India achieved success in its goal of bringing smartphone manufacturing into the country with the brilliant strategy of offering incentives and imposing taxes on imported devices. But, setting up a semiconductor industry requires substantial investments and the government is planning on only using incentives in order to attract the big players.

Earlier this month, Intel chief Pat Gelsinger had a meeting with prime minister Narendra Modi. As per a Business Today report, the two discussed India’s PLI scheme for the semiconductor industry.