The news has broken out at a time when the government is finally looking to devise an incentive scheme within the next six months to draw some large investments in the semiconductors sector
Applied Materials is in talks with the government of India and planning to setup a plant in the country. A report by the Business Standard points out that if the plan materialises, the United States sitated company will soon start setting up a plant here.
The company’s original plan revolves around setting up a plant that would manufacture some parts and components used in complex equipment which in turn are used for manufacturing semiconductor chips across the world. It is to be noted here that there exists no such commercial facility in India till date.
The news has broken out at a time when the government is finally looking to devise an incentive scheme within the next six months to draw some large investments in the semiconductors sector.
Ajay Prakash Sawhney, Secretary, Ministry of Electronics and IT (MeitY), was recently quoted saying during a virtual industry summit, “Both international and major Indian entities have come forward to expressing interest of various kind…and we are hopeful that we would be able to take this process forward.”
“Based on what we get from the expressions of interest that we have received and the extensive discussions that we have had with all the major players in this space over the past three months…we will attempt to come out with a scheme or incentive structure based on which we will then invite proposals to set up such manufacturing within India..within the next six months,” Sawhney added.
The Finance Ministry of India, in 2013, has announced zero custom duty on import of plant and machinery for semiconductor facilities. However, nothing that could called a substantial development took place back then.
Hindustan Semiconductor Manufacturing Corporation (HSMC), a consortium of companies that included STMicroelectronics and Silterra Malaysia were also aiming to start chip manufacturing plant in Gujarat through a project worth Rs 30,000 crore. However, the government in 2019, had cancelled the letter of intent granted to this consortium.
Similarly, another consortium led by Jaiprakash Associates that included IBM and Tower Semiconductor of Israel was to start chip manufacturing in UP. Jaiprakash Associates had pulled out of the Rs 34,000-crore investment in 2016.
