India Gets Global Chip Manufacturers, Including Those Operating In China By Offering IDR 146 Trillion

JAKARTA - India is trying to attract world chip manufacturers, including those operating in China, to set up factories in the country, and turn them into semiconductor production centers.

Therefore, India is willing to disburse funds of 10.2 billion US dollars or the equivalent of more than Rp. 146 trillion. The plan unveiled by Information Technology and Telecommunications Minister Ashwini Vaishnaw comes amid the semiconductor crisis caused by the COVID-19 pandemic.

"This historic decision will drive the development of a complete semiconductor ecosystem, from design, fabrication, packaging and testing," said Vaishnaw.

The crisis has also caused a global shortage of industries that need it, including new cars. India wants to lure countries by offering economic incentives, including manufacturers operating in China.

ABC News reported on Thursday, December 16, that the country hoped that producers might be willing to move to India because of the ongoing trade dispute between the US and China.

Vaishnaw believes that the incentives will attract companies involved in various parts of the semiconductor manufacturing process. The Indian government will provide fiscal support of up to 50 percent of the project cost to eligible display and semiconductor makers.

In addition, the Press Trust of India (PTI) said the government also hopes that investments that support the semiconductor sector will help create 35,000 special jobs and indirect jobs for 100,000 people.

Others, PTI said India wants to push electronics manufacturing to 300 billion US dollars in the next six years from a current 75 billion US dollars with semiconductor chips as an important part of the ecosystem.