India approves $13.3 billion for fresh semiconductor push
- The capital will be deployed to develop intellectual properties and chip designs
NEW DELHI: India’s cabinet approved the expansion of a key semiconductor programme with fresh capital of 1.28 trillion rupees ($13.30 billion) on Wednesday, Information Minister Ashwini Vaishnaw said.
The capital will be deployed to develop intellectual properties and chip designs, setting up more fabrication plants and boosting research and development, the government said in a statement.
Wednesday’s announcement comes roughly five years after India unveiled a $10 billion incentive plan, as part of a deepening push to establish the country as a global electronics production hub.
India has approved 12 manufacturing units and 24 semiconductor design projects under the 2021 incentive plan so far, it said.
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India’s cabinet also approved 625 billion rupees towards a five-year long programme aimed at boosting mobile phone manufacturing in the country, Vaishnaw said.
The programme provides incentives on eligible sales for manufacturing of mobile phones in India at differentiated rates ranging from 2.25% to 5%. The programme also provides an additional incentive of up to 1.5% linked to domestic sourcing of key components.
The programme is expected to generate around 60,000 direct jobs, the government statement added.
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