India has been know as the fastest growing economy of the world with India providing major software services that are outsourced by many other multinational corporations, but when it comes to hardware India lacks behind and is dependent on other countries to import it’s semiconductors.
However, Prime Minister Narendra Modi wants to change this with his “atmanirbhar” push and has announced his extensive plans to establish India as a leading semiconductor manufacturer during the keynote held at The Sydney Dialogue yesterday.
The Indian government is reportedly working on a package to push semiconductor production in India while at the same time aiming to invite global semiconductor manufacturing companies to invest and set up their chip production foundries in India.
The package to be provided by the government is expected to include financial support in the form of capital expenditures as we have seen with Japan offering subsidies up to $3.5 billion out of the total estimated cost of $7 billion to build the upcoming TSMC-Sony fabrication facility.
While at the same time providing tariff cuts on important components required for chip manufacturing including a stable water and power supply.
Earlier reports by the TOI have also indicated that the PMO is in talks with higher level executives of various companies from the likes of TSMC, Intel and AMD and is closely monitoring the push to bring semiconductor manufacturers to India
Apart from this many ministries have been asked to come up with other even more attractive policies to attract top semiconductor manufacturers to India.
PM Modi’s push is seen as a right move towards promoting technological and economic development in India while at the same time helping to ease the issues created by the global chip shortage that has affected production across many sectors globally.
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