India will encourage semiconductor makers in quest to become key player in global market says PM Modi

Prime Minister Narendra Modi on Friday said India will encourage companies willing to invest in semiconductor production. The PM said so as the South Asian nation sets its sights on becoming a key player in the global supply chain for chips, as per a Reuters report.

"We have shown that India means business, now it is over to you," Modi told the country`s first semiconductor conference in the southern tech hub of Bengaluru, reiterating his government`s support for the industry.

According to the government, the Indian semiconductor market will grow from $15 billion in 2020 to $63 billion in 2026.

Even though more companies and countries are vying for access to the chips at the core of critical technologies like 5G and others in the future, most of the world's chip production is limited to Taiwan and the United States.

According to Reuters, companies including a joint venture between Indian conglomerate Vedanta and Taiwan`s Foxconn as well as Singapore's IGSS Ventures, have applied for a USD 10 billion plan to recruit semiconductor and display makers.
The three-day meeting, which is part of the government's efforts to attract big-ticket investments, has drawn executives from tech giants Intel, TSMC, and Micron Technology Inc.

Vedanta is seeking incentives such as 1,000 acres (405 hectares) of free land to become India's first chip maker as part of its $20 billion expansion into semiconductors and displays, said Reuters.