India to pump $20B into chip, phone manufacturing
India committed to spend an additional INR1.9 trillion ($19.7 billion) on boosting chip and smartphone production in the country, accelerating an initiative first laid out five years ago.
Prime Minister Narendra Modi’s government has allocated around INR1.3 trillion to provide state aid for semiconductors and a INR625 billion outlay on smartphones.
The latest investment builds on the Semicon 1.0 initiative outlined in 2021 to invest around INR1 trillion on starting and establishing the country’s semiconductor sector.
In a statement, Ashwini Vaishnaw, minister for Electronics and Information Technology, explained under the refreshed Semicon 2.0, the nation would focus on ensuring chips are being designed in India that can meet all its needs, and by the end of the programme, “we will be 100% self-reliant”.
He added every major industry leader wants to establish a presence in the country “given the growing interest in India’s semiconductor programme”, pointing to partnerships already established with the US, Japan, the European Union (EU), Netherlands, Singapore and Germany.
The minister added the investment and incentives will be aimed at projects around chip design, fabrication of machinery, R&D and talent creation.
Under the Mobile Phone Manufacturing Scheme, Vaishnaw said it would create around 60,000 direct jobs, while it will look to incentivise domestic companies with Chinese suppliers currently dominating the market.
India’s semiconductor advancement adds to similar moves in the US, which has a funding programme in place worth $52 billion. The EU recently unveiled a revamp to its own Chips Act.
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