“While these are early stages, global and domestic players have evinced interest based on the prospects for the semiconductor industry in India and the fiscal incentives provided.”
When the official budget session commenced on Jan 31, 2023, the President of India Droupadi Murmu stated about the country’s manufacturing ecosystem in her opening speech and also mentioned that the nation is now undertaking strenuous efforts to boost in-house manufacturing of semiconductors. On Jan 31, 2023 The document Economic Survey was showcased, which clearly stated that several key global companies are now looking forward to making India an international center of semiconductors.
Moreover, the document also added that several large companies have already made investments and have announced to do the same, which is looking very promising to the industry. The report also mentioned that Israel-based International Semiconductor Consortium’s Memorandum of Understanding (MoU) has proclaimed to invest Rs 22,900 Crore in the state of Karnataka, which is going to be the first chip-manufacturing plant in India. Tata Group and Vedanta are another two giant firms who are looking to foray into semiconductor business.
As per the news report published on Moneycontrol, “While these are early stages, global and domestic players have evinced interest based on the prospects for the semiconductor industry in India and the fiscal incentives provided.” Back in September, another MoU was signed between the Gujarat government and India’s global conglomerate Vedanta Resources. In association with contract manufacturer Foxconn, announced the commencement of this plant. Previously, the company announced Foxconn will own 40 percent of the stake, while Vedanta will keep 60 percent. With a total investment of 1.54 trillion dollars, the venture includes a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit.
According to a previous report of CircuitDigest, prior to the announcement of Union Budget 2023-24, an exclusive report of Deccan Herald mentioned that there are expectations that a minimum sum of Rs 1200 Crores will be unleashed for the silicon-based semiconductor fabs and Rs 5,000 Crore for the total display and semiconductor manufacturing out of the Rs76,000 Crore PLI scheme unleashed in December 2021. But, the announcements from the budget did not meet the expectations, says the media.