The Indian government on Wednesday increased financial support for new semiconductor facilities to cover 50% of the project cost, and said it would remove the maximum investment cap allowed for display manufacturing to promote local Production.
The announcement comes as the Indian government seeks to attract more big investments under a $10 billion chip and display production incentive scheme aimed at making India a key player in the global supply chain .
"Based on discussions with potential investors, it is expected that work to build the first semiconductor facility will begin shortly," the government statement said on Wednesday.
The Indian government had previously agreed to cover 30% to 50% of the cost of setting up new display and chip factories. It will also cover 50% of the capital expenditure required to set up a semiconductor packaging facility, the government said on Wednesday.
Last week, oil and metal conglomerate Vedanta and Taiwanese Foxconn signed an agreement with the Indian state of Gujarat to invest $19.5 billion to build semiconductor and display production plants in the west.
Vedanta is the third company to announce a chip fab in India, following international consortium ISMC and Singapore-based IGSS Ventures, the first two in the southern states of Karnataka and Tamil Nadu.
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