India approves US$10 billion incentive plan to attract global chip makers
- India will extend fiscal support to eligible display and semiconductor fabricators, with Tower, Foxconn and Vedanta reportedly showing interest
- This comes as some companies look to diversify their manufacturing bases beyond China due to the trade war between Washington and Beijing
Under the plan, India’s government will extend fiscal support of up to 50 per cent of a project’s cost to eligible display and semiconductor fabricators, it said in a statement.
Israel’s Tower Semiconductor, Taiwan’s Foxconn and a consortium from Singapore have shown interest in setting up chip factories in India while Vedanta Group was keen to set up a display plant, government sources said.
Tower, Foxconn and Vedanta did not immediately respond to requests for comment.
“The programme will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design,” the government statement said.
The drive comes as some companies look to diversify their manufacturing bases beyond China due to the ongoing trade war between Washington and Beijing, and is a sign India is trying to move up the electronics value chain.