NEW DELHI: The government has reached out to top global semiconductor maker TSMC of Taiwan and Tata group for semiconductor investment. So far, the most significant investment in the sector following the announcement of the package has been made by the Vedanta-Foxconn JV, which intends to set up a plant in Gujarat with proposed investments of around Rs 1.5 lakh crore. The hunt for investors comes as the Cabinet on Wednesday approved the expanding of benefits that were promised under production-linked investment scheme.
The government will now provide 50% fiscal support to those making chips for industries such as automobiles and electric vehicles, telecom, computers, IoT devices, and servers. Many of these were previously getting support, ranging between 30% and 50%. The new package now also promises the 50% support to those engaged in semiconductor packaging and verification work, a critical job in the semiconductor manufacturing chain.
MoS IT and electronics minister Rajeev Chandrasekhar said that while previously, the incentives were highest for the top-notch silicon fabs used for high-tech chips required for mobile devices and high compute, the government wants to attract players across the ecosystem.
The minister said that the government is in talks with a variety of chipmakers looking to make investments across the production eco-system, but refused to name any of the companies that were being engaged.