According to foreign media reports, according to two Indian officials, India plans to provide more than $1 billion in cash subsidies to each semiconductor company that has established a manufacturing department in the country, in order to build on the smartphone assembly industry and strengthen the country. Electronic supply chain.

Indian Prime Minister Narendra Modi's "Made in India" plan helped the country become the world's second largest mobile phone manufacturer after China. India believes that it is time to attract semiconductor companies to expand production locally in India.

A senior government official said: "The government will provide more than US$1 billion in cash subsidies to every semiconductor company that will set up a manufacturing department. We assure them that the government will become a buyer, and in the private market, companies will also be encouraged to buy local Manufactured chips."

Another government official, who asked not to be named, said that the method of payment of the cash subsidy has not yet been decided, but the government has asked the industry to provide feedback. As the shortage of chips hinders the expansion of the automotive and electronics industries and highlights the world’s dependence on Asian suppliers, governments around the world are providing subsidies for the construction of semiconductor factories.

The first source said that locally produced chips will be designated as "trusted sources" and can be used in everything from closed-circuit television cameras to 5G devices. But he did not disclose whether any semiconductor companies have shown interest in establishing subsidiaries in India, and the Ministry of Science and Technology of India did not respond to requests for comment.

India has tried to attract semiconductor companies to settle before, but the country's backward infrastructure, unstable power supply, bureaucracy and poor planning have discouraged these companies.

Industry insiders said that following the success of the smartphone industry, the Indian government's new round of efforts to attract semiconductor manufacturers is more likely to succeed. In addition, Indian companies such as Tata Group have also expressed interest in entering the electronics and high-tech manufacturing industries.

In December last year, India invited chip manufacturers to submit a "Letter of Intent" for setting up manufacturing plants in India or acquiring such manufacturing plants overseas by Indian companies. Two sources said that taking into account the level of industry demand, the Indian government will extend the deadline for submission of the letter of intent from January 31 to the end of March.

An auto industry source said that an investor consortium led by Abu Dhabi fund Next Orbit Ventures has shown interest in setting up a semiconductor manufacturing business in India.

Three other auto industry sources who asked not to be named said that Indian Ministry of Science and Technology officials met with senior executives from the Association of Indian Automobile Manufacturers (SIAM) earlier this year to assess the demand for chips from automakers. The Indian government estimates that the establishment of a chip manufacturing plant in India will require about 5 billion to 7 billion U.S. dollars. After all the approvals are in place, it will take 2 to 3 years to complete and start production.

The source added that the Indian government is willing to provide companies with more concessions, including exemption of tariffs, subsidies for research and development expenses, and interest-free loans. (Little)

Source: NetEase Technology Report, translated by Google Translate