The government has made a fresh bid to attract major global chip manufacturers into the country at the Semicon India summit.
Incentives offered by the government:
- Production-linked incentive scheme- A 10 billion dollars production-linked incentive scheme was unveiled for chip makers in late 2021.
- Financial assistance- A low corporate tax rate, sops for all new manufacturing projects and 50% financial incentives under India’s semiconductor programme has been offered.
- Government’s involvement- The government would bear half of the typically large investment outlays that companies commit to undertake.
From the point of view of Investors:
- Friendshoring’ arrangement-Investors want to de-risk themselves from the dominance of China in the chips manufacturing supply-chain through ‘friendshoring’ arrangements and this arrangement from India is like a perfect match.
- Stable operating environment-Apart from incentives, investors also need to see evidence of a stable operating environment with a predictable policy framework.
- India’s trade linkages with world markets -They would also compare India’s trade linkages with world markets through bilateral or multilateral compacts.
Semicon India Summit 2023:
- ATMP Plant- The conference witnessed the announcement of India’s first assembly, testing, marking and packaging (ATMP) facility plant in Sanand, Gujarat.
- Tagline-The event came up with the tagline: Charkha to Chips.
- Inspiring the Youth- The three-day Semicon India conference, was accompanied by a five-day exhibition aimed at exposing students and young professionals to the exciting world of chips