The government aims to lay the groundwork for the country’s first semiconductor manufacturing unit by June-July next year, and a request for proposal (RFP) will soon be issued to solicit commercial bids from companies. The amount of the incentives will be decided after soliciting comments from companies operating in the space, sources said.

“India’s semiconductor dream will come true soon. It is the Prime Minister’s dream to have semiconductors designed and manufactured in India. We are working to develop the complete semiconductor ecosystem – for the design, manufacture and packaging of semiconductor chips, ”Communications and Informatics Minister Ashwini Vaishnaw told Financial Express. However, he did not provide any details.

In December 2020, the Ministry of Electronics and Informatics (Meity) issued an expression of interest (EoI) for the establishment of semiconductor factories in India and 15-20 companies had expressed interest in the creation of such units.

The need for local chip manufacturing facilities is still felt today with the current global chip shortage which is hurting industries in all sectors as electronic items are needed in all segments nowadays.

“Semiconductors have played a key role in the advancement of electronics over the past 50 years and will continue to play an even greater role with the introduction of new technologies and applications, including the Internet of Things ( IoT), artificial intelligence, 5G and smart cars. , smart factories, date centers, robotics, etc. Meity said in the EoI for semiconductors released in December.

Semiconductor manufacturing is a complex and research-intensive industry requiring significant and sustained investment.

As the previous plan to establish semiconductor factories failed, the government is ensuring this time that any incentive program should be able to meet the demands of the industry. Since setting up semiconductor factories requires billions of dollars in investment, government support should also match investment.