India can reduce its import dependence and improve its resistance to disruptions in the global supply chain by encouraging domestic production.
India wants to become more self-sufficient in terms of chip supply, especially after the pandemic disrupted the global supply chain and the US imposed restrictions on semiconductor exports to China. As a result, it plans to announce the opening of its first semiconductor fabrication facility in the coming weeks. According to India's IT Minister Ashwini Vaishnav, the nation is in a good position to establish a robust chip sector within the next few years as a result of encouraging policies and the effort of the government to increase manufacturing. Three organizations—a Vedanta-Foxconn joint venture, the International Semiconductor Consortium, and Singapore's IGSS Ventures—are seeking for funding under India's $10 billion incentive program.
India's encouragement of domestic production will reduce its reliance on imports and increase its adaptability to setback in the global supply chain. It will also promote economic growth and job possibilities. With competition from China, Taiwan, and South Korea, India is providing a variety of financial and other incentives, including infrastructural development and simplified regulations, to entice international corporations to create semiconductor fabs in the nation. The country is extending financial support equal to 50% of a fab construction project cost "to applicants who are found eligible and have the technology as well as capacity to execute such highly capital and resource-intensive projects," according to a Ministry of Electronics and Information Technology statement in September.
An independent organization called the Indian Semiconductor Mission was established last year to coordinate with other governmental agencies to guarantee that the nation's semiconductor projects are carried out effectively. A semiconductor and display manufacturing plant will be built in the Dholera Special Investment Region, close to Ahmedabad, Gujarat, if the Vedanta-Foxconn joint venture is approved. In order to build a $3 billion fabrication plant in Karnataka, where it has requested 150 acres in the Kochanahalli industrial region, ISMC, a consortium made up of Israel's Tower Semiconductor and Abu Dhabi's Next Orbit Ventures, has signed a memorandum of understanding with the Karnataka government. According to a report by the Indian-based business news website Mint, just one of the three consortia is expected to obtain money, with IGSS virtually out of the running.
Source: https://www.computerworld.com/article/3691030/india-set-to-announce-its-first-semiconductor-fab.html
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