India says it will support semiconductor firms

India says it will support semiconductor firms

Prime Minister Narendra Modi said on Friday that India will provide support for companies looking to invest in semiconductor manufacturing, as the South Asian nation sets its sights on becoming a key player in the global supply chain for chips.

More firms and countries attempt to ensure access to the chips at the core of critical technologies such as 5 G, and others of the future, the bulk of the world's chip output is limited to places such as Taiwan and the United States.

Modi told the country's first semiconductor conference in the southern tech hub of Bengaluru that India has a commitment to the industry, and now it's over to you, reiterating his government's support for the industry.

The government says that the Indian semiconductor market, worth $15 billion in 2020, is expected to reach $63 billion by the year 2026.

A $10 billion plan to attract semiconductor and display makers has attracted applications from companies such as a joint venture between the Indian conglomerate Vedanta and Taiwan's Foxconn and Singapore's IGSS Ventures.

The three-day meeting, part of the government's effort to attract big ticket investments, has attracted executives from tech giants Intel, TSMC and Micron Technology Inc.

Vedanta is seeking incentives such as 1,000 acres 405 hectares of free land as part of its $20 billion foray into semiconductors and displays in the race to become India's first chip maker.