Intel Seems Keen on Coming to India Following a Multi-Billion Dollar Chip Manufacturing Sanction
American tech company Intel might make some noise in the Indian sub-continent following the country’s decision to reward players in the semiconductor market with a new government approved scheme.
With the world facing a dire need of semiconductors because of the shortage brought by the lack of resources, it seems like India might step up to bring forth a new global power in the market. Moreover, with its growing young workforce, and now a new Rs 76,000 scheme from the Government of India, it looks like Intel wants to capitalize by setting up their own manufacturing unit on the sub-continent.
Is Intel hinting at a potential semiconductor move to India soon?
Recently, Randhir Thakur, the Senior Vice President of the Intel Foundry Service, tweeted about the new Production-linked incentive (PLI) Scheme from the Government of India that incentivizes companies to build their manufacturing units in India. The executive tweeted his support for the scheme as it helps tackle a major shortage in the technological world by providing a reward for companies like Intel to produce semiconductors on the sub-continent.
Hon’ble MoS @GoI_MeitY Sh @Rajeev_GoI underlining how Rs 76,000 crore #PLIScheme for the semiconductor manufacturing ecosystem in India in attracting global behemoths to set up manufacturing units in India demonstrates his vision for #AatmanirbharBharat. https://t.co/pXEf2K8as2
— STPI (@stpiindia) December 31, 2021
However, rumor has it that Intel might already have a plan in action to create their own plant in India following a retweet from Ashwini Vaishnaw, who is the Indian Minister for Railways, Communications, Electronics & Information Technology. The tweet included a heartfelt welcome to the company from the Government of India minister, and it seems like Intel might be interested in tapping into this new market that will showcase a lot of upsides, thanks to the new scheme from the government.
What is the new PLI scheme from the Government of India all about?
The reason many companies like Intel might want to move from global powerhouses like China to India for their semiconductor needs revolves around the new Cabinet-approved scheme called Programme for Development of Semiconductors and Display Manufacturing Ecosystem worth Rs 76,000 ($10 billion).
Intel – welcome to India. https://t.co/1Wy90HfAjy
— Ashwini Vaishnaw (@AshwiniVaishnaw) December 28, 2021
Under this scheme, the Government of India is looking to set up around 20 manufacturing hubs to design and produce semiconductors, a valuable electronic item that is facing a global shortage crisis.
The scheme will benefit the titans of the industries, but along with that, it will also boost start-ups’ chances of dipping their hands into this world as well. With this PLI scheme, India hopes to grab the attention of semiconductor manufacturers like Intel, TSMC, Apple and many more to shift the market towards its favor.
It remains to be seen if Intel will jump the gun and tackle the semiconductor crisis by taking advantage of this scheme and build a manufacturing unit in India.