Construction of India’s 1st chip factory may start by year end
NEW DELHI: Multinational chipmakers are in discussions with various states to build factories and the construction of the first such plant in India is expected by the end of the year, a government official said. Semiconductor makers including Taiwan Semiconductor Manufacturing Company Ltd (TSMC) are in talks with Andhra Pradesh, Karnataka, Gujarat, Tamil Nadu, Maharashtra and Uttar Pradesh as they seek out better infrastructure and incentives to set up their facilities in the country.
“The biggest names have shown interest, many serious proposals are on the table; we’re hopeful that they will materialize soon,” the official said on condition of anonymity. “We should have the first groundbreaking by the end of the year,” the official added.
The government had earlier confirmed receiving proposals from five companies to build electronic chip and display manment ufacturing plants at a total investment of ₹1.53 trillion under the Semicon India Programme, which offers incentives of ₹76,000 crore.
A Vedanta-foxconn joint venture, IGSS Ventures and ISMC have proposed chip plants with total investments of $13.6 billion investment and have sought the support of $5.6 billion from the Centre under Semicon India.
An independent business division, India Semiconductor Mission (ISM), with administrative and financial autonomy, has also been set up to support developof a semiconductor ecosystem in the country. The official said that a chief executive officer for the division will be appointed soon. To attract global semiconductor makers, the government is also working on tying up supply chains and creating an ecosystem.
For chipmakers, key requirements to build a facility include consistent electricity supply, high-grade water supply, close connectivity to air or sea port, and availability of chemicals and raw materials, besides skilled manpower.