India is planning to establish a new
semiconductor support fund worth over ₹1 lakh crore
¨
India is planning to
establish a new semiconductor support fund worth over ₹1 lakh crore.
¨
The objective of this initiative
is to strengthen domestic chip manufacturing.
¨
It also supports India's
ambition to become a global manufacturing hub.
¨
This fund will provide
subsidies for semiconductor design projects. It will also assist in financing
manufacturing equipment for chip production.
¨
This initiative will aid
in the development of the semiconductor supply chain.
¨
Discussions regarding
this proposal are currently ongoing.
¨
This strategy is similar
to the policies adopted by the United States.
¨
The U.S. supports
semiconductor manufacturing through the CHIPS and Science Act.
¨
Under that program,
approximately $52 billion was allocated for domestic chip production.
¨
In China, semiconductor
companies receive financial assistance from large government funds.
¨
India aims to attract the
world's major semiconductor manufacturing companies.
¨
The country plans to
offer incentives and subsidies to these companies.
¨
This new fund will build
upon the previous semiconductor incentive program launched in 2021.
¨
That program offered to
cover up to 50 percent of a project's cost.
¨
It was designed to
support companies establishing semiconductor facilities.
¨
An allocation of
approximately $10 billion was made for the previous scheme.
¨ India aims to develop semiconductor capabilities on par with the world's leading producers.
¨ The country has set a target of 2032 to achieve this goal.
