The Indian government is going to take a big step to accelerate chip manufacturing in the country. For this, the government is planning to bring a new fund of about Rs 1 lakh crore (about 10.8 billion dollars), the objective of which is to make India a global semiconductor manufacturing hub.
According to sources, this fund can be launched in the next 2 to 3 months. Through this fund, subsidies will be given to projects related to chip design, manufacturing equipment and supply chain. However, this plan is still under discussion and there may be changes in it.
Government’s focus on chip industry
The semiconductor industry in India is still in its initial stages, but the government wants to take it forward rapidly. Under the leadership of Prime Minister Narendra Modi, the government is working towards making the country a big center of electronics manufacturing.
The demand for chips is increasing rapidly around the world. Semiconductors have become extremely important for artificial intelligence, smartphones, cars, electronic devices and other technology products. This is the reason why many countries are making big investments to strengthen their chip industry.
The plan has already started
The Government of India had started an incentive scheme of about 10 billion dollars in the year 2021. Under this scheme, the government was ready to pay almost half of the cost of setting up a chip manufacturing project.
After this initiative, many big companies have announced investment in India. For example, Micron Technology is building a chip assembly unit in Gujarat. Tata Group is also preparing a semiconductor fabrication plant and packaging unit in Gujarat.
Trying to attract global companies
India’s strategy is to attract global tech companies to invest. Just like Apple Inc. has increased iPhone assembly in India, similarly the government wants chip companies to also start production in India.
The government’s aim is that in the coming years, India should gradually move towards advanced semiconductor manufacturing. The government hopes that by the year 2032, India will be able to achieve capacity equal to the big countries of the world in the field of chip manufacturing.