Five companies have offered investment proposals totaling $20.5 billion (~Rs 1.53 lakh crore) to India for the local production of semiconductor and display fabs, as per a government statement. Companies including Vedanta in a joint venture with Foxconn, Singapore-based IGSS Venture, and ISMC have outlined a $13.6 billion investment for chip production in the country.
Bloomberg in a report, these three companies have requested $5.6 billion from the central government as part of its incentive package. According to the statement, two other businesses, Vedanta and Elest, have filed investment offers totaling $6.7 billion for the production of display fabs, as well as seeking government incentives totaling $2.7 billion.
The Semicon India Programme focuses on the successes of Digital India and Make in India initiatives in the electronics manufacturing industry. The concrete plans have built a robust foundation for the program, transforming the country into a globally friendly and competitive market for semiconductor and display manufacturing.
The Ministry of Electronics and Information Technology, in a statement, said, despite the stringent deadlines for application submissions in this sector of semiconductor and display manufacturing, the initiative has received a positive response.
Companies like HCL, Syrma Technology, SPEL Semiconductor, and Valenkani Electronics have also registered for semiconductor packaging, while Ruttonsha International Rectifier has registered in the compound semiconductor category. Three companies have applied for the Design Linked Incentive Scheme: Trispace Technologies, Terminus Circuits, and Curie Microelectronics. In addition to the applications, the companies have presented plans for technology acquisition, collaborations, and partnerships, with research institutes.
The companies’ enthusiastic commitment to the Semicon India Program supports Prime Minister Narendra Modi’s vision of “Atmanirbhar Bharat,” with the goal of achieving technology leadership in the semiconductors category within the next 20 years.
The report also suggests that the Indian semiconductor market is expected to reach $63 billion by 2026, up from $15 billion in 2020. This incentive scheme is a step introduced by Prime Minister Narendra Modi to help improve the industrial sector of the economy, which has been harmed by the pandemic. These incentives were offered as it is projected that the global semiconductors shortage will last until early 2023, with demand being above long-term demands in 2022.
The global semiconductor shortage has been negatively affecting the automobile industry for some time lately, and many automakers’ manufacturing has been significantly impacted as a result. Toyota and Volkswagen scaled-down production volumes and temporarily suspended production in their factories. The global semiconductor crisis has also affected Indian automakers including Ola Electric and others.