Encouraging chip manufacturing, this country plans to restart the $10 billion chip subsidy program application

Source: Global Semiconductor Watch

    According to Bloomberg on May 10th, there are market reports that India plans to restart the $10 billion reward and aid application process, aimed at encouraging chip manufacturing in the country.

    According to previous data, currently, in addition to local manufacturing enterprises in India laying out and building factories, it has also attracted multiple foreign enterprises to invest and build factories.

    For example, in terms of local enterprises, there have been reports that Sahasra Semiconductors, a local Indian company, has invested 7.5 billion rupees to establish a storage chip factory.

    In terms of foreign-funded enterprises, Hon Hai Group and Vedanta have collaborated to build a 28 nanometer 12 inch wafer factory, which is expected to be put into operation in 2025, with an initial monthly production capacity of 40000 pieces; The international semiconductor consortium ISMC plans to invest $3 billion to establish a wafer factory in India, with initial plans to produce 65 nanometer logic chips; Singapore Investment Group IGSS also plans to invest $3.25 billion to establish a wafer factory in Tamil Nadu, India.

    In addition, Li Jidian Chairman Huang Chongren also confirmed earlier this year that he had signed a cooperation agreement with the Indian government to assist in establishing a semiconductor wafer factory in the local area. However, the specific details have not yet been finalized. Initially, the Indian government may need to allocate land and provide water and electricity facilities before both parties can sign a cooperation agreement.

    In recent years, due to the strategic needs of developing the economy and stabilizing the supply chain, India has been vigorously expanding its semiconductor industry. Not only was a $10 billion incentive plan approved in 2021, but a production incentive plan with an investment of 760 billion rupees (approximately 62.6 billion yuan) was also announced in 2022.

     India hopes to ensure that there is no sudden shortage of chips needed domestically in the next 3-5 years, and to avoid significant price increases in various fields such as electronics, automobiles, and high-tech products caused by the shortage.