Chip 'n' Tale
The government has announced some definitive steps to try and make India a semiconductor manufacturing hub.
Rs 76,000 crores ($10 billion) have been earmarked for helping the development of the semiconductor of 'chip' industry in India as companies worldwide are struggling with the chip shortage the world is facing.
The incentives will be provided as part of the Production-linked incentive (PLI) scheme, which has already had some success in the electronics manufacturing segment.
Electronics and IT minister Ashwini Vaishnaw said that the aim is to develop a complete ecosystem for chip manufacturing in India.
The target will be to support companies that are engaged in silicon semiconductor fabrication, display fabrication, compound semiconductors / silicon photonics / sensors fabrication, semiconductor packaging and semiconductor design
The gov will support up to 50% of the cost of setting up these facilities by applicants who have the right tech capabilities and get approved.
In addition, 100 domestic companies of semiconductor design for integrated circuits, chipsets, system on chips, systems and IP cores, semiconductor-linked design will be supported and the target here is to build at least 20 companies with a turnover of Rs 1,500 crores each in the next 5 years.
This is great news because for many many years we've been seeing stories that the gov is trying to 'woo' chipmakers to come to India and all. But this is the first time a proper plan (and money) has been set to actually incentivize the sector.