India Receives $21 Billion Worth of Chipmaking Proposals

India Receives $21 Billion  Worth of Chipmaking Proposals

The Indian government is facing a tough decision as it has to choose among eight chipmaking proposals worth $21 billion, which could boost its domestic semiconductor industry and reduce its reliance on imports.

The proposals come from both foreign and local players, including Israel’s Tower Semiconductor Ltd. and India’s Tata Group, who are vying for the government’s financial support under its chipmaking incentive plan. The plan offers to cover half the cost of any approved projects, with a total budget of $10 billion.

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The government’s interest in developing its own chipmaking capabilities stems from the growing demand for semiconductors in various sectors, such as smartphones, electric vehicles, and defense. India is currently one of the world’s largest importers of chips, spending about $20 billion a year on them. The global chip shortage has also exposed the vulnerability of relying on foreign suppliers, especially from China.
Chip Strategy

SETTLIN: The Online PlatformD 

The government has been trying to attract international chipmakers to set up plants in India, as part of its broader vision to make the country a global manufacturing hub. It has also offered incentives to other sectors, such as electronics and automobiles, to boost local production and exports. However, India’s chipmaking ambitions have faced several challenges, such as the lack of infrastructure, skilled workers, and technology partners.
The government is expected to evaluate the proposals and announce the winners by the end of the year. If successful, the projects could help India join the ranks of the few countries that have their own chipmaking facilities, such as the US, Taiwan, South Korea, and China.

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Source : yahoo finance

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