Government of India planning to give 7300 crore rupees to each company making semiconductors in India
There is a shortage of semiconductors all over the world. The supply of semiconductors has also slowed down the pace of the industry. The Government of India sees this as a big opportunity. The government is working on a plan to make the country a major exporter of semiconductors. The Indian government is giving one billion dollars, or about 7300 crore ($1 billion) rupees cash, to each company making semiconductors.
Benefit from ‘Make in India’ campaign
Manufacturing units will be installed in the country with the help of the amount given by the government. This will benefit the domestic smartphone industry and will also strengthen the electronics supply chain. Prime Minister Narendra Modi’s ‘Make in India’ campaign has helped India become the world’s second-largest mobile phone manufacturer after China. According to a senior government official, the government was giving more than a billion dollars in cash to each company to set up a chip fabrication unit.
Government will buy semiconductor from companies
Government sources said that, we are assuring companies that the government will buy semiconductors from them. It will also make it compulsory for private sector companies to buy semiconductors made in India. However, a decision on how the government will release this amount is yet to be made. For this, the government has also sought feedback from the industry. Indian groups such as the Tata Group have also shown interest in electronics and high-tech manufacturing. It is known that governments around the world are subsidizing the construction of semiconductor plants. This is because the chip shortage is affecting the auto and electronics industries. The world’s dependence on its supply has come to Taiwan.
China cuts tax for semiconductor development
Recently, China announced tax exemption to encourage and accelerate its semiconductor industry. China has taken this step amid US restrictions on access to state-of-the-art equipment. Restrictions have restricted access to US processor chips for technology company Huawei and some other companies. After the tariff war with the US, there was talk of dependence on US devices for smartphones and other industries. After that China is now keen to develop these devices on its own. China is the largest importer of processor chips and other semiconductors. Its exports are worth more than $300 billion annually.
