In-line with the ambition to turn the country into a chip powerhouse, the government is likely to invite a second round of applications for semiconductor chip manufacturing in the country under the $10 billion incentive package, The Economic Times reported on February 10 citing a person aware of the development.
According to the report, the government is in advance talks with four global semiconductor companies to set up fabs. New York-headquartered GlobalFoundries and a major Korean semiconductor firm have expressed interest and the application round are expected to open as early as mid-March, the report added.
In the second half of 2021, the government outlined the $10 billion incentive plan to attract semiconductor and display manufacturers as part of a deepening push to establish the country as a global electronics production hub.
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Under the plan, India's government will extend fiscal support of up to 50% of a project's cost to eligible display and semiconductor fabricators, the government said in a statement.
The Economic Survey 2023 document tabled on January 31, listed Israel-based International Semiconductor Consortium’s Memorandum of Understanding (MoU) to invest Rs 22,900 crore in Karnataka to set up India’s first chip-making plant. Vedanta and Tata Group are two domestic companies with interests in the semiconductor business.
In September, Vedanta signed a Memorandum of Understanding (MoU) with the Gujarat government to set up a semiconductor unit in the state. Vedanta said it is setting up this plant in a joint venture (JV) with Taiwan-based Foxconn.
The project includes a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit and entails a total investment of Rs 1.54 trillion.
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