[Asia Economy Reporter Jeong Hyunjin] The Indian government, led by Narendra Modi, which has issued a 'challenge' to foster the semiconductor and display industries, is accelerating its efforts to attract investment. Based on the $10 billion (approximately 14 trillion KRW) support plan announced last year, India expects to attract global companies and secure investments totaling at least 35 trillion KRW.
According to Bloomberg and other sources on the 21st (local time), the Indian government announced in a statement that it will cover half of the costs for all semiconductor manufacturing facilities. Previously, India had announced that it would support 30-50% of project costs depending on the type of semiconductor.
Along with this, the Indian government stated that it will provide incentives covering 50% of the costs to attract display factories and will also remove the previous support cap of 120 billion rupees (approximately 2.1 trillion KRW).
Rajeev Chandrasekhar, India's Minister of State for Electronics and IT, told reporters that the incentives for the semiconductor and display sectors are expected to generate at least $25 billion in investment. He said the government is in discussions with many companies looking to invest in India's semiconductor sector, adding, "We have experience in fostering growth in the electronics industry and provide the basic infrastructure needed to establish manufacturing facilities."
Prime Minister Modi, who has been striving to revive manufacturing for 'Make in India,' is now aiming to elevate the value chain of Indian manufacturing through semiconductor production. The Modi government launched an investment attraction campaign in December last year, offering $10 billion in subsidies amid the global semiconductor dominance war. Large-scale investment, advanced technology, and massive supplies of water and electricity are essential for semiconductor manufacturing, but India's infrastructure has been evaluated as lacking in these aspects.
Following India's support announcement, in May, the International Semiconductor Consortium (ISMC) announced a 229 billion rupee investment plan to build a semiconductor factory in Karnataka, southern India. In July, Singapore's IGSS Ventures signed a memorandum of understanding (MOU) with the local government to promote the construction of a semiconductor factory in Tamil Nadu, southern India. Recently, Taiwan's Foxconn held a signing ceremony for an agreement to invest $19.5 billion with India's Vedanta to establish factories manufacturing semiconductors and displays in Gujarat, western India.
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