India approves US $10 billion incentive plan for semiconductor manufacturers

India approves US $10 billion incentive plan for semiconductor manufacturers

NEW DELHI: India has approved a US $10 billion incentive plan to attract semiconductor fabricators and display manufacturers, as part of its efforts to establish itself as a global electronics production hub, the technology minister said on Wednesday.

Israel's Tower Semiconductor, Apple's contract manufacturer Foxconn and a Singapore-based consortium have shown interest in setting up semiconductor fabrication units in India, a government source told Reuters.

Vedanta Group was keen to set up a display manufacturing plant in India, according to the source.

Technology Minister Ashwini Vaishnaw said that New Delhi has approved a design linked incentive plan to encourage 100 local companies in semiconductor design for integrated circuits and chipsets.

Prime Minister Narendra Modi has taken a historic decision that will help develop the complete semiconductor ecosystem from the design of semiconductor chips to their fabrication, packing and testing in the country, he said.

India's second-biggest smartphone maker has announced the plan at a time when automakers and tech companies are grappling with a global semiconductor shortage.

Tata Group, one of India's biggest conglomerates, is investing up to US $300 million to set up a semiconductor assembly and test unit, and is in talks with three states.