India to subsidize US$1 billion for semiconductor manufacturing

India officials are allegedly subsidizing US$10 billion in semiconductor manufacturing, according to Reuters citing knowledgeable sources.

The investment comes timely as global chipmakers and foundries are raising production capacity. Intel India’s head Nivruti Rai said India is Intel’s largest R&D base outside the US, but Intel is not strong in terms of manufacturing and testing in India, according to Hindu Business Line.

On the supply side, Intel India has invested a lot in IC design and software in India. India government’s PLI subsidy schemes for manufacturing electronics and other products locally are expected to raise send demand higher.

However, Intel has not deployed resources in India to manufacture semiconductors. Intel as well as TSMC, Samsung have been investing in the US, Europe, and Japan, and it seems unlikely for them to focus on India.

Rai said Intel is working with many local startups to manufacture notebooks and are collaborating with Bharti Airtel, Reliance to increase presence in 4G/5G network telecommunication.

According to Rai, Intel’s investment in India has increased to an accumulated sum of US$7 billion. Digi Times