India Sends Semiconductors Aatmanirbharta On Fast Drive
Image credit X.com @PiyushGoyal
India takes strides in semiconductor self-reliance
By Sanjay Singh
New Delhi, October 5: As India realizes its vision of becoming Aatmanirbhar Bharat in the semiconductor space, the government is gearing up to meet the global demand. The government is working on an ambitious plan to increase India’s semiconductor market by over five times, from the current levels of US$35.18 billion in 2023 to US$109.8 billion by 2030.
The government has ramped up its semiconductor ambitions with a $15-billion incentive blueprint focused on chip fabrication, reducing subsidies for assembly plants, and supporting advanced technologies to attract global investments.
The Union Cabinet had earlier approved the comprehensive Semicon India programme with a financial outlay of Rs 76,000 crore for the development of a sustainable semiconductor and display ecosystem in 2021.
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Besides, the PLI scheme aims to create a robust semiconductor manufacturing ecosystem in India, positioning the country as a key player in the global semiconductor supply chain. Here are some of the top companies that stand to benefit from this initiative.
Government’s Semicon India programme comes with a total outlay of Rs 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country. The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.
Schemes that have been introduced under this programme includes: Modified Scheme for setting up of Semiconductor Fabs in India’ extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fabs in India and Modified Scheme for setting up of Display Fabs in India’ extends fiscal support of 50% of Project Cost for setting up of Display Fabs.
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Uttar Pradesh State government recently announced first semiconductor park coming to Greater Noida. The State has approved 225 Acres of land for setting up semiconductor plants. With this initiative, UP became the fourth state to implement a semiconductor policy, following Gujarat, Odisha, and Tamil Nadu.
Recently, Taiwan’s semiconductor company Foxconn is going to invest up to Rs 424 crore in a semiconductor joint venture with Shiv Nadar owned HCL Group. The iPhone contractor company Foxconn has bought a 40% stake in the joint venture for Rs 312 crore.
Foxconn had already invested about Rs 246 crore in the JV through its subsidiary Big Innovation Holdings and further increased the investment amount to Rs 312 crore through Foxconn Hon Hai Technology India Mega Development Private Limited.
The company has invested over USD 1.4 billion in India as of August 2024, and its business has grown to USD 10 billion. Currently, over 48000 employees are serving the company.
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