In what could be seen as an aggressive push for inviting semiconductor chip manufacturers to India, Prime Minister Narendra Modi on Friday offered 50 per cent financial assistance to such firms for setting up their facilities in the country. Modi announced this during his inaugural speech at the three-day "Semicon India 2023" conference on Friday in the state capital Gandhinagar.
"Last year, the government had sought suggestions from the players of the semiconductor industry. On the basis of these suggestions, the government has taken many major decisions. The incentives we were giving under the Semicon India programme have been increased. Now technology firms will be given 50 per cent assistance to set up semiconductor manufacturing facilities in India. We are continuously carrying out policy reforms to accelerate the growth of the country's semiconductor sector," the PM said.
He said that it is not just India that "requires semiconductors" but the world is also looking for a "trusted chip supplier". He said that "India as the largest democracy" is that "trusted" supplier.
The PM was speaking on the inaugural day of the conference. The event is hosting leaders of several global companies and startups from the semiconductor industry. On the first day, Mark Papermaster, executive vice-president and chief technology officer, AMD, announced to invest around $400 million dollars in the next 5 years in its "largest design centre" in Bengaluru.
The PM also highlighted the government's programmes to create a "semiconductor ecosystem" by changing engineering curricula. He said that 300 colleges have been identified in the country where courses on semiconductors will be offered.
In the event, US-based semiconductor firm Micron Technology reiterated its decision to set up its first chip manufacturing unit in Gujarat. Company's CEO Sanjay Mehrotra said that his planned $2.75 billion project for a semiconductor testing and packaging unit in Gujarat will create 5,000 jobs.
The PM's offer of 50 per cent financial assistance is being seen as an "aggressive push" to attract more technological firms to invest in the country. Officials in Gujarat said they were not entirely surprised by the announcement of 50 per cent assistance to technology firms. They said that Gujarat, by releasing its semiconductor policy-2022-27, has already announced several such doles to attract such firms. They said that Gujarat is the first and perhaps the only state which has its own policy in this emerging sector.