Following the Indian Cabinet’s approval of Rs. 76,000 cr. incentive scheme for semiconductors, it’s been reported that American chipmaker Intel is planning on setting up a manufacturing facility in the country. Ashwini Vaishnaw, Minister for IT and Electronics welcomed Intel through a tweet that read “Intel – welcome to India.”
Intel – welcome to India. https://t.co/1Wy90HfAjy
— Ashwini Vaishnaw (@AshwiniVaishnaw) December 28, 2021
Intel and other companies will receive financial aid to set up facilities
The incentive scheme, which is named “Programme for Development of Semiconductors and Display Manufacturing Ecosystem” is aimed at boosting the production of semiconductors in the country and making India a global hub for electronics. India will set up over 20 semiconductor design and manufacturing facilities over the next six years and will provide financial aid to not only large companies but also start-ups that want to get into the manufacturing, designing, testing, or packaging of semiconductor chips and train over 85,000 engineers for the same.
“Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs)… and semiconductor linked design, and facilitating the growth of not less than 20 such companies which can achieve turnover of more than ₹1,500 crores in the coming five years,” an official statement said.”
In addition to boosting semiconductor chip production, this move will also create thousands of jobs within the country.
Chip shortage might continue till 2023
We’re familiar with the current chip shortage in the world and that has hampered the production of CPUs, GPUs, and consoles as well. While several companies are looking at alternatives to ramp up chip production, Intel CEO Pat Gelsinger stated that the chip shortage could continue till 2023.