Incentives for all those who want to set up scale factories in the country

Prior to the global chip crisis, which was born after the movement restrictions imposed by COVID-19, part of the industry shifted the production of its products from China to India due to tax concessions (and cheap labor), and now the country does not. He wanted to miss the opportunity and is looking forward to announcing the United States and the European Union Approved the $ 10 billion incentive program For semiconductor and display manufacturers, they are eager to see India as the next location for their new factories.

According to Reuters, The Government of India will bear up to 50% of the project cost of the new semiconductor and display factories. So far, at least three companies appear to be interested in the semiconductor manufacturing program: Israel’s Tower Semiconductor, Foxconn (Apple’s maker) and the unidentified Singapore consortium.

“The project will usher in a new era in electronics manufacturing by providing global competitive incentives to semiconductor and display manufacturing and design companies,” the government statement said.

A. Kururaj, CEO, Optimus Electronics, an Indian contract maker, said, “Advanced technology in India will help create more jobs and increase investment. “This will help reduce the import of expensive technology.”

The Government of India expects investments to be made About 35,000 direct jobs For more qualified employees, in addition More than 100,000 indirect jobs. If India succeeds in attracting some foreign companies to set up foundries locally, this is one way Promote local knowledge in semiconductor production, Which will lead to local foundries in the future, however this will not happen in the future.