Major international semiconductor companies are eyeing India given its ambitious plan to become a semiconductor hub. Quoting sources, Mint says that some of the manufacturers are likely to formally express an interest in the near future.
Along with additional incentives, India has pledged more than $10 billion in federal and state subsidies to encourage semiconductor production. This is likely to extend the field of competitors for these subsidies. The timeframe that was believed to have closed for eligibility will probably be opened again even though three contenders are still being evaluated.
The government's efforts to entice international semiconductor companies have been successful, according to Ashwini Vaishnaw, the minister of communications and information technology, who returned after spending three days in Silicon Valley and meeting with more than 60 semiconductor companies.
“There’s huge confidence about India’s semiconductor programme. We have received interest from a number of large players. The entire ecosystem wants to come to India," Vaishnaw, who is also the railways minister, said.
The government is confident that it has the ideal mix of enabling elements, including financial incentives, top-notch talent, infrastructure investments, and supportive policies, to draw significant investments in both core chip manufacturers and the supporting units that make up the chip manufacturing industry, attracting players from all segments.
According to a Bloomberg report, the government has also decided to keep the three proposals submitted under the previous window by Vedanta-Foxconn JV, International Semiconductor Consortium (ISMC), and Singapore's IGSS Ventures, which total $10 billion in financial incentives with a 50% subsidy on investments for making semiconductors in India, open to potential applicants. December 2021 saw the announcement of the programme.