India apparently plans to offer over $ 1 billion to every semiconductor firm that opens production facilities in the country. The news comes as the government seeks to strengthen its electronics supply chain and grow its existing smartphone assembly industry.
According to the report Reuters, two officials close to the case, the transfer of local government is part of Prime Minister Narendra Modi's "Make in India" initiative. This has made the region the second largest smartphone manufacturer in the world after China. The government now believes the country needs to develop a similar strategy to relocate manufacturing sites from chip firms.
In the words of a senior government official, “The government will provide over $ 1 billion in cash incentives to each company that creates chip manufacturing units. We assure them that the government will be the buyer and that there will be requirements in the private market (for companies to buy locally made chips). ” Although it remains to be decided how these monetary incentives will be issued, and the government has also solicited feedback from industry representatives, according to a second source from the government.
Currently, governments around the world are subsidizing the semiconductor industry and the construction of chip factories. This is especially important at a time when the world is facing a global shortage of semiconductors. The scarcity also highlights the dependence of various countries on Taiwanese suppliers. Notably, the official also added that locally produced chips will be designed as “trusted sources” to be used in equipment ranging from security to networking.
