Second round of applications to set up semiconductor units
STORIES, ANALYSES, EXPERT VIEWS
The Centre is likely to invite a “second round” of applications for semiconductor chip manufacturing under the $10 billion incentive package. The second round of applications is expected to open around mid-March.
It is also in “advanced talks” with four global semiconductor companies to set up fabs, with those having expressed interest including the likes of New York-headquartered GlobalFoundries and a major Korean semiconductor firm.
Last year, India had accepted five proposals for the scheme with the application window having closed in February 2022.
ET had earlier reported that of the applicants in the first round, the Centre is keen to have Foxconn set up a manufacturing plant in India.
While the Centre is offering 50% subsidy on fab units, states are offering 10-25% subsidy over and above the central grant, making the total incentive quite “lucrative”.