A US$10bn Incentive Plan Prepared to Attract Chip Producers
The Indian government has requested Samsung Electronics to build a semiconductor factory in India. India plans to attract semiconductor giants with subsidies to expand semiconductor production.
According to Indian media reports, Chief Minister of Tamil Nadu M.K. Stalin made the request to Samsung Electronics.
The Indian government prepared a US$10 billion incentive plan in 2021 to promote semiconductor production.
Semiconductor consumption in India is expected to grow from US$21 billion in 2019 to US$400 billion in 2025, according to the KOTRA Mumbai Trade Center and the India Electronics and Semiconductor Association (IESA).
India lacks semiconductor production capacities. The Indian semiconductor design market expanded from US$14.5 billion in 2015 to US$52.6 billion in 2020, but the nation does not have enough factories to produce chips.
Samsung Electronics entered India in 1995. The Korean tech giant is producing home appliances in India, including QLED TVs, The Frame, and refrigerators. However, there is no Samsung semiconductor plant in India. Semiconductor factories are established with customers in mind. In this respect, India does not have advantages over the United States or China.