September 22, 2022
According to India’s junior IT minister Rajeev Chandrasekhar, India is expecting total investment of at least $25 billion through its new incentive system aimed at boosting local production of chips and display panels.
His comments came just hours after the Indian government increased fiscal support for new semiconductor facilities to cover 50% of project costs and announced that it will abolish a limit for maximum permitted investments.
The decision will allow incentives for display manufacturing as part of an effort to attract more investment to make India a key player in the global supply chain as part of a $10 billion incentive plan for chip and display production.
Initially, the government promised to pay between 30% and 50% of the cost of building new display and chip factories, but now it also covers 50% of the capital costs associated with building semiconductor packaging plants. Without giving names, Chandrasekhar said that the government is in talks with many global players about investing in India’s chip sector.
The plan is bearing fruit now that the oil-metal consortium Vedanta and Taiwan’s Foxconn have agreed to invest $19.5 billion in India to build semiconductor and display manufacturing facilities, making Vedanta the third company to announce a chip plant in India after Singapore-based ISMC and IGSS Ventures, an international consortium.
The sources of this article are an article in Reuters.
