India is offering over $1 billion in cash for every semiconductor company that will set up manufacturing plants in the country, according to Reuters.
- A senior official said the government will provide cash incentives of more than $1 billion for each company that will set up chip fabrication units to assure that the government will be a buyer. There will also be mandates in the private market for companies to buy locally made chips.
- The government has yet to decide on the disbursement of the cash incentives and has yet to ask the industry for feedback.
- Prime Minister Narendra Modi’s “Make in India” has enticed investors and turned the country into the world’s second-biggest mobile manufacturer after China. The country also wants to establish reliable suppliers for its electronics and telecom industry to cut dependence on Beijing.
- India previously tried to pursue two semiconductor firms which were deterred by concerns on the country’s infrastructure, power supply, bureaucracy, and planning.
- India in December invited chipmakers to set up fabrication units in the country through an “expression of interest.” The deadline was extended to end-March from January 31, with Abu Dhabi-based Next Orbit Ventures one of the applicants as part of a consortium.