The Indian government has approved a $10bn scheme to set up semiconductor and display manufacturing in the country, in a push to become a global hub for electronics production.
The government will extend fiscal support of up to 50pc of project cost for eligible semiconductor and display fabricators under this scheme, and also provide incentive to companies that are engaged in compound semiconductors/silicon photonics/sensors fabs, semiconductor packaging and design.
"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 said in a statement.
India has committed support of $30bn to position itself as a global hub for electronics manufacturing, especially semiconductors, the statement said.
The initiative comes at a time when companies across the globe feel the pinch of supply chain issues that has caused a shortage of semiconductors.
India's automobile production dropped by 26pc on the year in November because of the chip deficit, while it also led the country's largest car manufacturer Maruti Suzuki to announce production cuts for a fourth straight month in December.
Automakers in North America, the UK, Mexico, Brazil and Japan among others have taken a hit due to the chip shortfall.
Research firm Gartner predicts semiconductor shortages, supply chain bottlenecks and the push for autonomous driving capabilities will drive half of the top 10 automotive original equipment manufacturers to design their own chips by 2025.
