Companies including Vedanta in partnership with Foxconn, IGSS Ventures pte of Singapore, and ISMC have proposed an investment of $ 13.6 billion to manufacture chips, which are used in a variety of products ranging from 5G devices to electric vehicles.
India has received $ 20.5 billion in proposals from five semiconductor textile and display companies in the region, according to a government statement.
Companies including Vedanta in partnership with Foxconn, IGSS Ventures pte of Singapore, and ISMC have proposed an investment of $ 13.6 billion to manufacture chips, which are used in a variety of products ranging from 5G devices to electric vehicles. The three companies have demanded $ 5.6 billion in funding from the coalition government under its promotional program.
“Despite the vicious times of submission of applications in the greenfield segment of semiconductor and display production, this program has received a positive response,” the Department of Technology and Information Technology said in a statement.
In addition, two companies – Vedanta and Elest – have submitted $ 6.7 billion proposals to create display fabrics and demand $ 2.7 billion incentives from the government, according to a statement.
The semiconductor market of the South Asian nation is estimated to reach $ 63 billion by 2026 compared to $ 15 billion by 2020. These incentives have been announced amidst a forecast that global chip shortages are likely to be extended until early 2023 and demand may remain higher than long-term expectations by 2022.