As per industry sources, India expects at least twelve semiconductor manufacturers to start setting up local factories in the next 2-3 years after the Indian government offered incentives for the sector.
The government is working on developing a full ecosystem for the chip manufacturing industry and will start taking applications under its incentive scheme from January 01, 2022.
The government had recently approved standard operating procedures (SOPs) worth Rs 760 billion ($10 billion) spread over six years to boost local chip production, a move which is likely to help India reduce its reliance on expensive imports of the material used in everything from mobile phones to electric vehicles amid a global shortage.
The government expects compound semiconductor units and design and packaging companies to get approval within the next 3-4 months. The country intends to get involved in several stages of chipmaking, including silicon and display fabs and semiconductor packaging. It will start with fabrication of mature 28nm to 45nm parts and will request a road map from candidate companies for moving to more advanced production techniques over time.
