SG Talk

December 15, 2021
10:26 PM +08
Last Updated a day ago

By Sankalp Phartiyal


NEW DELHI, Dec 15 (Reuters) - India has approved a US$10 billion incentive plan to attract semiconductor and display manufacturers, its technology minister said on Wednesday, as part of a deepening push to establish the country as a global electronics production hub.

Under the plan, India's government will extend fiscal support of up to 50% of a project's cost to eligible display and semiconductor fabricators, the government said in a statement.

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New Delhi also approved an incentive plan to support 100 local firms working on integrated circuit and chipset designs.

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Prime Minister Narendra Modi's government has offered about US$30 billion in incentives to woo some of the world's largest electronics manufacturers to set up shop in India and give the domestic industry a fillip.

The push has already helped make India the world's second-biggest smartphone maker behind China. (Levin's note: I think India passed Vietnam as the 2nd largest manufacturer of mobile phones in 2018 or 2019).


https://www.reuters.com/world/china/indi...021-12-15/

The "manufacturing" that India currently does for phones and PCs is really mostly component assembly to avoid import duties for the India domestic market. Nearly all electronic components still come from other countries, e.g. CN, JP, KR, SG.

Making chips is on another level, not just assembly. Besides, the biggest risk in India is the strikes. Imagine investing $10b on a wafer fab and constantly being held to ransom by workers on strike for a pay increase.

Good luck to companies setting up chips factories in India!