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The government of India is pitching high in attracting more and more entrepreneurs to set up semiconductor fabrication units in India.  At least 10 such units are estimated to come up in the immediate years. We cannot keep importing chips always as several manufacturing units need chips. Taking a call of the government's ATMA NIRBHAR BHARAT nearly five proposals are in the pipeline and many more are expected to be received in the coming months.

At the inaugural session of the SEMICON INDIA, 2022 conference in Bangaluru Prime Minister Modi expressed his intent to place India as one of the key partners in the global semiconductor supply chain and accordingly India will play its role as an enabler and force multiplier through the PRODUCTION LINKED INCENTIVE (PLI) Scheme and a $10 billion package was announced in December 2021 to encourage the more and more investors to set up semiconductor units in India.  Having a roadmap for 20years many more tranches of support might be announced in the due coursed of time. The government is reaching out to all sorts of international players - BIG or Small. Larger companies like Intel, TSMC, and Samsung are majorly interested to invest in India in chip-making. The domestic market for semi-conductor ships is expected to grow by $80 billion by the year 2026 and by more than $110 billion by 2030.

Not only the fabrication of chip-making units, the government is also promoting other components helpful for compound semiconductors and design aspects in the industry. India's efforts in enhancing EV manufacturing, cell phone production, digital connectivity, rural broadband connections, ease of doing business, digitization, and technological advancements in Artificial Intelligence and Machine Learning will prove to be catalysts to the growth of the semiconductor industry.


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