India likely to see local chip manufacturing begin in the next 2-3 years

The recently announced productivity-linked incentive (PLI) scheme for boosting semiconductor and display manufacturing in India has reportedly been very well received. As per the latest report, the local manufacturing of chips will begin in 2-3 years.

For the unaware, the Indian government recently approved a Rs 76,000 crore PLI scheme to boost local chip production in the next six years. The PLI scheme is not only said to boost domestic chip manufacturing but also help in creating jobs, mitigate import dependency and much more.

Soon after the government of India announced the PLI scheme for chip manufacturing, the Minister of Electronics and Information Technology Aswini Viashnaw during an interview with Bloomberg Television said at nearly 12 semiconductor manufacturers are expected to start setting up local factories in the next 2-3 years.

The minister also said that India is planning to develop an entire ecosystem related to the chip manufacturing industry. He highlighted that the country will start accepting applications under the incentive scheme from January 1, 2022..

Vaishnaw further highlighted that the scheme has received great response and all the big players are in talks with Indian partners. “Many want to come directly to set up their units here. Almost all the big ones are talking to us,” he said.

“In next 2-3 years time frame, we see at least 10-12 semiconductors going into production, we see display fab going into production or may be finalizing completion,” Vaishnaw said. “At least 50-60 designing companies would have started designing the products in the next 2-3 years”.

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