In its bid to become a major manufacturing powerhouse, India is offering $1 billion in cash incentives to chipmakers that set up in-country.
Countries and companies the world over are more concerned with the semiconductor supply chain than ever before. The global pandemic illustrated the shortcomings of having the world’s mobile manufacturing and supply of semiconductors concentrated in just a couple of countries.
India wants to change that, with its sights set on becoming the second-largest mobile manufacturing country in the world.
“The government will give cash incentives of more than $1 billion to each company which will set up chip fabrication units,” a senior government official told Reuters.
“We’re assuring them that the government will be a buyer and there will also be mandates in the private market (for companies to buy locally made chips).”
India’s plans will likely benefit from tensions with China, including the current trade war between the US and China.