India Boosts Incentives for Chip & Display Industry

Reported on September 21, the Indian government has increased financial support for new semiconductor facilities, will undertake 50% of the capital expenditure required to build a semiconductor packaging plant, and said it will lift the maximum investment cap allowed for display manufacturing to boost local production.

The announcement of the incentives comes as Prime Minister Narendra Modi's government is trying to attract more big investment through a $10 billion incentive program for chip and display production, as it seeks to make India a key player in the global supply chain. a member.

Construction work on the first semiconductor facility is expected to begin soon after discussions with potential investors, the Indian government said in a statement on Wednesday.

The Indian government had previously agreed to bear 30% to 50% of the cost of building new display and chip factories, and on Wednesday the Indian government said it would also undertake 50% of the capital expenditure required to build a semiconductor packaging facility.

Last week, Vedanta, a large Indian multinational group, will cooperate with Taiwanese electronics foundry leader Hon Hai. The two companies have a joint venture of about 19.5 billion U.S. dollars, of which Hon Hai invested 118.7 million U.S. dollars to build a semiconductor factory in the ancient Tharati province of western India.

Vedanta is the third company to announce a chip factory in India, following international semiconductor consortium ISMC and Singapore-based IGSS Ventures. ISMC and IGSS Ventures set up factories in Karnataka and Tamil Nadu in southern India respectively.