The Indian government recently issued a letter of intent (EoI) to establish an existing semiconductor FAB factory in the region, and even plans to provide incentives to attract investment.
According to a report by BusinessToday, the government is keen to attract investment to establish or expand wafer/equipment manufacturing plants in India, and even acquire semiconductor FABs outside of India.
It is worth noting that these plans are a major part of the government’s Electronic National Policy 2019, which aims to position India as a global hub for electronic system design and manufacturing (ESDM).
For those who don’t understand, in today’s era, semiconductor technology has become an indispensable part of the digital world, and various economies are also vying to pursue similar goals.
It is worth noting that semiconductors are a key part of the total value of the bill of materials (BOM). In addition, semiconductor manufacturing is a complex and research-intensive field that also requires a lot of investment.
Therefore, the Indian government plans to encourage and attract investment to establish FAB in India.
As the United States is working hard to increase its global manufacturing share in smartphones, automotive electronics, IT hardware, industrial and medical technology, and even Internet of Things (IoT) devices in the near future, this move has also arrived.
The country plans to expand its electronics manufacturing industry to US$400 billion by 2025. The government is currently inviting proposals for the semiconductor FAB, and the final submission date is January 31, 2021.
The information received through these responses will help to plan. Expand existing semiconductor facilities or acquire such factories outside India