A multi-billion-dollar incentive scheme for semiconductor manufacturing companies could be launched after the new government takes charge, according to a report by the Times of India. The results for the ongoing Lok Sabha elections 2024 will be declared on June 4.
The package will follow the Rs 76,000-crore scheme announced in December 2021 to support the manufacturing of chips in the country. According to the report, the old scheme is close to being fully used.
The work on the new plan is underway and will be bigger than the previous scheme, sources in the report said, adding that it will be announced after the elections.
In the past couple of years, India has been trying to put the country on the map of chip manufacturing by introducing incentive plans to attract companies.
The India Cellular & Electronics Association (ICEA) urged the government to treat the semiconductor industry as a strategic sector, which allows access to cheap funds and helps develop a capital market system for the hi-tech industry.
ICEA represents Apple, Foxconn, Lava, and other Chinese handset companies. The body also urged the government to work towards investments in refurbished fabs and enable mechanisms to back chip design firms and the growth of a skilled semiconductor workforce.
The government is also working on a policy framework to reduce dependence on chip imports by mandating the procurement of domestically produced semiconductors, according to a CNBC-TV-18 report.
The central government’s efforts received a boost early this month after US carmaker Tesla inked an agreement with Tata Electronics, which is building a chip plant in India, for the purchase of semiconductors for its global operations. The Tata Group firm’s plant, which will be built in collaboration with PSMC at an estimated cost of Rs 91,000 crore, is seeking to attract talent from Taiwan.
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