The Indian government is trying to accelerate the development of the country’s semiconductor industry by attracting major global manufacturers. According to online sources, India is currently negotiating with Intel, Taiwan Semiconductor Manufacturing Co. (TSMC) and GlobalFoundries to build their chip factories in the country.

Image source: businessinsider.in

Semiconductor products are used in a wide range of devices, from smartphones to cars. Therefore, the desire of India to increase the production of semiconductors is quite logical. At the end of last year, the authorities announced the allocation of about $10 billion to stimulate the industry, offering chip makers to compensate up to half the cost of creating a production base in the country.

“I make most of the proposals to large companies myself. We meet with the CEOs, we talk with them, we make presentations ,” said Rajeev Chandrasekhar, head of India’s Ministry of Electronics and Information Technology. He also noted that Indian states compete with each other in terms of providing incentives for large companies that could establish production on their land.

Some companies, such as Foxconn Technology Group, are reportedly showing interest in setting up semiconductor manufacturing in the country. At the same time, other major producers are approaching this issue with caution due to power outages in the country and underdeveloped infrastructure. However, the incentives offered by the government have already helped India ramp up smartphone production. At the same time, the development of the semiconductor industry requires significant investment, so the Indian authorities intend to offer favorable conditions only to large chip manufacturers.