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Contents
What is the news?
India will roll out a mega multi-billion-dollar capital support and production-linked incentive plan to push the manufacturing of semiconductors.
About the production-linked incentive plan
The ambitious plan is being coordinated and monitored closely by the Prime Minister’s Office (PMO) and multi-ministries have joined the process.
The government recently had a high-level meeting on the matter attended by Telecom and IT minister, Principal Scientific Adviser, and others.
About semiconductors
India imports almost all semiconductors to meet demand estimated to reach around $100 billion by 2025 from about $24 billion now.
Previous efforts to improve the semiconductor industry had failed due to lack of heavy investments required in the manufacturing as well as the lack of uninterrupted clean water and electricity
| Read more: Semiconductors: Why India should not make chips – Instead, the focus should be on other parts of the global value chain |
What are the opportunities for India?
‘China plus 1’ policy of companies: Many global companies are deciding to have a diverse supply chain for semiconductors and are investing in countries other than China to reduce their risk. This presents investment opportunities for India.
Domestic demand: The government expects domestic production of electronics to move up to $350-400 billion by 2025, against the estimated $75 billion now.
| Must read: Need of Indigenous Semiconductor Manufacturing Facilities in India – Explained Pointwise |
Source: This post is based on the article “Semiconductor crunch: Govt plans mega package to woo investments” published in The Times of India on 1st November 2021.
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