(MENAFN– KNN India)
New Delhi, Jun 29 (KNN)
India has received proposals worth USD 20.5 billion from five companies to establish Semiconductor and display fabs locally, the Ministry of Electronics and Information technology announced on Saturday.

Three companies – Vedanta in joint venture with Foxconn, Singapore-based IGSS Ventures pte, and ISMC – have proposed investments totaling USD 13.6 billion for chip manufacturing.

These semiconductors are crucial components in a wide range of products, from 5G devices to electric vehicles. The firms have requested USD 5.6 billion in government support under India’s incentive scheme.

Additionally, Vedanta and Elest have submitted proposals valued at $6.7 billion for display fab manufacturing, seeking USD 2.7 billion in government incentives.

“The scheme has elicited good response, despite aggressive timelines for submission of applications in this greenfield segment,” the ministry stated, highlighting the strong interest in India’s push for domestic high-tech manufacturing.

This development comes at a critical juncture for the global semiconductor industry. With the chip shortage expected to persist until early 2023 and demand projected to remain above long-term expectations in 2022, India’s entry into chip manufacturing could have far-reaching implications.

The country’s semiconductor market is poised for explosive growth, with estimates suggesting it could reach USD 63 billion by 2026, up from USD 15 billion in 2020. This four-fold increase underscores the strategic importance of India’s move to attract semiconductor investments.

Prime Minister Narendra Modi’s government views this initiative as key to boosting the manufacturing sector’s share in the economy and reversing the pandemic-induced slowdown. The incentive program is part of a broader strategy to position India as a global hub for high-tech manufacturing.

As the global chip shortage continues to disrupt supply chains across industries, India’s emerging role in semiconductor production could potentially alleviate some of these pressures while simultaneously advancing its economic goals.

The success of these proposals could mark a turning point for India’s tech industry, potentially reshaping global semiconductor supply chains and bolstering the country’s position in the international tech landscape.

(KNN Bureau)