India reportedly to launch refreshed chip incentive package

The Times of India, citing senior officials in the Indian government, said that India is considering launching a new multi-billion-dollar incentive package for semiconductor companies. This move comes as the previous Rs 760 billion plan, introduced in December 2021, is nearing exhaustion.

According to the report, announcements regarding the new package will likely be made after the national elections and the formation of the new government. Preliminary work has already commenced, and the upcoming package is expected to surpass the previous one significantly in size.

Since the launch of India's INR 760 billion (US$91 billion) incentive scheme aimed at bolstering the localized semiconductor and display fab ecosystem, the country has given the green light to four projects. These projects, totaling a project cost of INR 1,481.4 billion, will benefit from India's fiscal support covering 50% of the project cost. As a result, these ventures stand to receive a substantial subsidy exceeding INR 740 billion, complemented by additional subsidies from state governments.

India's INR 760 billion incentive scheme for semiconductor manufacturing falls short of efforts by other countries striving for self-reliance in this sector. For instance, according to the Semiconductor Industry Association, the CHIPS Program Office (CPO) in the US has announced grants totaling US$29.337 billion and offered loans of up to US$25.1 billion to seven companies across 16 projects spanning ten states as of April 25.

Source: DIGITIMES Asia, April 2024