Due to the slow progress of projects already announced, such as billionaire Anil Agarwal’s $19 billion proposal, India is redoubling its efforts to attract potential chipmakers to the nation. According to those who know about the situation, New Delhi intends to restart the application process for the $10 billion in incentives and assistance intended to promote domestic chip making.
They noted the elimination of a previous 45-day deadline for submission as another benefit of keeping the process open-ended; they wished to remain anonymous because the discussions are private. That comes after a first effort launched last year only managed to attract three applicants, all of whom have made just minimal advancement thus far.
India working on eliminating the use of Chinese imports:
India is working with other nations, such as the US, to increase chip production in an effort to decrease dependency on Taiwan and China and the cost of imports. The fact that no major international chip player has moved their headquarters to the South Asian country as a result of the endeavour highlights the enormous difficulty that supply chain moves entail.
Also read, Strong bank, Auto Results boost Q4 Bluechip Profits.
The government of Prime Minister Narendra Modi initially granted businesses just 45 days, starting on January 1, 2022, to apply for financial backing in order to launch a domestic chip sector. The state promised to cover up to half of the cost of constructing a chip manufacturing facility. However, the short application period resulted in a small number of applicants, including a group that includes Tower Semiconductor Ltd. and a collaboration between Agarwal’s Vedanta Resources Ltd. and Taiwan’s Hon Hai Precision Industry Co.
The persons claimed that India now intends to permit businesses to reapply and is prepared to accept applications until its budgeted $10 billion in incentives is depleted. That implies that other organisations may be competing to secure federal assistance for chip plants in addition to the Vedanta and Tower firms. The Indian conglomerate Tata, which produces everything from salt to software, has made it known that it wants to start creating chips.
Vedanta, a metals and mining company, and Hon Hai, a partner in the iPhone’s production, have a difficult time producing semiconductors because neither has had any expertise doing it. In addition, Vedanta is struggling under a mountain of debt, so Agarwal’s proposal to construct a chip facility depends on financial assistance from the government. The company is just weeks away from receiving an in-principle or preliminary government approval, but in the end, more challenging measures are necessary to secure the public money, the sources claimed.
For more business related news, click here.
