Early investors in tier-2 semiconductor hubs to gain from incentives and lower costs, says report

According to a Quess Corp Limited’s report, early movers in India’s Tier-2 semiconductor sector stand to gain from policy-driven incentives and significant cost advantages as Tier-1 hubs face increasing saturation and attrition. With long-term scalability in view, Tier-2 cities are essential in India’s semiconductor roadmap for the coming decade.

The Centre has approved four more semiconductor projects under the India Semiconductor Mission (ISM), two in Odisha and one each in Andhra Pradesh and Punjab. The four proposals will establish semiconductor manufacturing facilities with a cumulative investment of about Rs 46 billion and are expected to generate a total employment of 2,034 skilled professionals.

With these four plants, the total number of approved projects under the India Semiconductor Mission (ISM) reaches 10, with cumulative investments of around Rs 1.6 trillion in total six states.