Government invites proposals for setting up chip factories in India and acquiring overseas

The government has solicited proposals from entities to set up microchip manufacturing units in the country and even acquire any overseas semiconductor manufacturing company.

The Expression of Interest launched by the Ministry of Electronics and Information Technology (MeitY) on Tuesday said the government is keen to encourage and attract investment in the establishment of semiconductor manufacturing units in India.

Also read: Semiconductor shortage may prove a speed bump for the auto industry

“The MeitY invites Expression of Interest (EoI) companies/consortia willing to establish/expand existing Semiconductor Wafer/Device (FAB) fabrication facilities in India or acquire Semiconductor FABs in outside of India,” the EoI document reads.

MeitY has set January 31, 2021 as the deadline for submitting the proposal.

The government plans to use the proposals to formulate a plan for establishing or expanding existing semiconductor factories in the country, according to the document.

MeitY said the need for semiconductor factories is growing in importance given that India is poised to increase its share in the global manufacturing of mobile phones, computer hardware, automotive electronics, industrial electronics, medical electronics, IoT and other devices in the near future. future as it aspires to have $400 billion in electronics manufacturing by 2025.

The government had approved two semiconductor units in 2013 with an investment of around ₹63,000 crore. However, the two units could not be set up due to the lack of electronic manufacturing ecosystem in the country and policy-related market support.

Along with the production-related incentive program for electronics manufacturing, MeitY had announced the electronic component and semiconductor manufacturing promotion program along with a budget expenditure of ₹3,285 crore spread over a period eight years, but no microchip maker has shown interest in the scheme yet.

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