Global chip giants eye India presence

That would potentially widen the scope of claims to more than $10 billion in federal and state subsidies, among other benefits, that India has announced to attract semiconductor manufacturing. While the three contenders are part of an ongoing evaluation process, the window that was closed to be eligible is likely to be reopened.

Government’s efforts to attract global semiconductor companies have yielded results, said Communications and Information Technology Minister, Ashwini Vaishnav, who returned after spending three days in Silicon Valley and met with over 60 companies in the semiconductor sector. that he showed great interest.

“There is a lot of confidence in India’s semiconductor program. We have received interest from a number of big players. The entire ecosystem wants to come to India,” said Vaishnav, who is also the railways minister.

The government believes it has the right combination of supportive factors, including fiscal incentives, high-quality talent, investment in infrastructure and favorable policies to attract large investments not only in core chip makers, but also in supporting chip manufacturing. The doers make the industry. , which will attract players of all classes.

According to a Bloomberg report, the government has also decided to open a $10 billion financial incentive scheme with 50% subsidy on investment to make semiconductors in India for potential applicants, even if it is among the three proposals submitted under the previous window. continue to evaluate. by Vedanta-Foxconn JV, International Semiconductor Consortium (ISMC) and IGSS Ventures of Singapore. The scheme was announced in December 2021.

This comes at a time when global chip companies such as Intel, TSMC and Global Foundry are being wooed by several countries.

Anil Agarwal-promoted Vedanta Resources to set up a display fabrication unit, integrated semiconductor fabrication unit and outsourced semiconductor assembly and test facility in Dholera, Gujarat with an investment of $20 billion, in a joint venture with world’s leading contract manufacturer Foxconn planning. ,

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, which was acquired by Intel Inc in February last year. The ISMC consortium signed an MoU with the Karnataka government for a $3 billion manufacturing plant in Mysuru, where it has sought 150 acres of land in the Kochanahalli industrial area.

Singapore-based IGSS Ventures Pvt. Ltd signed an MoU with the Tamil Nadu government in July last year for the construction of a semiconductor hi-tech park, which includes a fab unit, with an investment of $3.5 billion or 25,600 crore in six years.

The government has not yet approved any proposal.

The government’s effort to invite big global players to India comes at a time when India is striving to become a significant player in the chip ecosystem on the back of its large, open market and skilled workforce, providing alternative supply chains to countries. Forcing you to watch. China.

“The semiconductor industry will double from the current $600 billion to $1 trillion-plus. India is the most cost-effective country. It’s the only place with talent. So the next big destination has to be India. India’s vision of developing a comprehensive ecosystem is exactly Right,” Vaishnav said during his visit to the US last week, where he toured an Applied Materials semiconductor plant, met top bosses from HP, Intel, Western Digital, Micron and more. AMD, among others, is inviting companies to invest and set up manufacturing in India.

India also signed an MoU on Semiconductor Supply Chain and Innovation Partnership, which aims to enhance private sector collaboration in the field of semiconductors.