India unveils $10.2b plan to attract semiconductor makers

By AP 15 December 2021, 7:31 pm

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Illustrative. Computer processors. Conventional computers process information, or bits, each of which can be either a zero or a one, in the binary language of computing. Quantum bits, however, used by quantum computers, can be both a zero and one simultaneously. (Rost-9D; iStock by Getty Images)

India announces a $10.2 billion plan to try to attract global chipmakers to set up shop in the country and transform it into a production hub of semiconductors.

The plan unveiled by Information Technology and Telecom Minister Ashwini Vaishnaw comes amid a severe shortage of semiconductors caused by the COVID-19 pandemic, which has led to global shortages of products that need them, including new cars.

India wants to lure countries with economic incentives, including manufacturers with operations in China that might be willing to shift to India because of the ongoing trade disputes between the US and China, Indian officials and business leaders have said.

Vaishnaw tells reporters that incentives will attract companies involved in various parts of the semiconductor manufacturing process. India’s government will provide fiscal support of up to 50% of project costs to eligible display and semiconductor fabricators, Vaishnaw adds.

“Today’s historic decision will boost the development of complete semiconductor ecosystem, ranging from design, fabrication, packaging, and testing,” he says.