(Bloomberg) -- India is wooing semiconductor and display makers to the country by increasing financial incentives for setting up manufacturing units under a $10 billion plan.
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Prime Minister Narendra Modi’s administration will bear half the cost of setting up all semiconductor manufacturing units, it said in a statement on Wednesday. Previously, New Delhi said it would offer fiscal support ranging from 30% to 50% of a project’s cost depending on the type of chip manufactured.
India, the world’s second-biggest mobile phone maker, is eyeing chip sovereignty as it tries to cut back on expensive imports and become a global supplier like neighboring China.
The country also removed a cap of 120 billion rupees ($1.5 billion) on 50% of the project cost for companies setting up display fabrication factories. It increased financial support for companies setting up chip assembly units to 50% of capital expenditure from 30%.
A joint venture of Taiwan’s Hon Hai Precision Industry Co., also known as Foxconn, and metals company Vedanta Ltd. will set up a factory in Modi’s home state of Gujarat, Vedanta said earlier this month. The total investment in the project, which includes semiconductor fabrication, assembly, and testing, as well as display production, is set to reach more than $19.4 billion, according to the company.
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