India’s semiconductor plan to attract $25 billion in investment
India has unveiled a new plan to bolster its semiconductor and display facilities claiming it will attract more than $25 billion in outside investment.
According to a study by the India Electronics and Semiconductor Association (IESA) in partnership with Counterpoint Research, the market is predicted to cash-in around £300bn in cumulative revenues by 2026.
US President Joe Biden has also shown America’s support of the sector, pushing for a new chip bill earlier this year to “supercharge” efforts to make semiconductors.
It comes amid a shortage in materials used to make semiconductors after the Covid-19 pandemic, which was predicted to be a serious a setback for the wider tech community.
Reuters reported on Wednesday that India’s production-linked incentive (PLI) scheme has already banked around $10bn which the Indian government has set aside for the construction of a semiconductor and display manufacturing electronics ecosystem.
The scheme has also undergone recent alterations which were given the go ahead by the Cabinet on Wednesday.
The report said that the new scheme will increase the local sourcing of semi-components sooner rather than later, in conjunction with the Make in India initiative which was launched in 2014 as part of a set of nation-building initiatives.
India and the US aren’t the only country setting sights on the semiconductor industry. Earlier this year, South Korea unveiled a new semiconductor research and development complex in Giheung spearheaded by manufacturer Samsung Electronics.
President Kye Hyun Kyung and CEO of Samsung Electronics said it will become a “hub” for innovation and mark the foundation for sustainable growth of the business.
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