India gets $20 billion in investment proposals for chip production.

India has received proposals worth $20.5 billion from five companies to manufacture semiconductor fabs and display fabs locally. Companies including Vedanta in a joint venture with Foxconn, Singapore-based IGSS Ventures Pte, and ISMC have proposed $13.6 billion investments for manufacturing the chips, which are used in a wide array of products ranging from 5G devices to electric cars. The three companies have sought the support of $5.6 billion from the federal government under its incentive plan.

India Cabinet Approves $10 Billion Incentives for Semiconductors. Further, two companies Vedanta and Elect have submitted proposals worth $6.7 billion to manufacture display fabs and have sought incentives of $2.7 billion from the government.

The South Asian nation’s semiconductor market is estimated to reach $63 billion by 2026 compared with $15 billion in 2020. The incentive program is an effort by Prime Minister Narendra Modi to boost the share of manufacturing in the economy and reverse the pandemic-induced slowdown. The incentives were announced amid a prediction that a global chip shortage is likely to extend until early 2023 and demand may remain above the long-term expectation in 2022.

Source: Business Standard