US CHIPS Act sets advantage for Indian semiconductor industry

New Delhi, Sept 10 (KNN) The semiconductor industry in India may benefit from the US legislation’s CHIPS Act.

According to a media report, it intends to promote domestic production of semiconductors and set up advanced technology factories in the US. 

For the next 10 years it will also prohibit companies receiving funding from the US government from setting up such factories in China, as per a report by Mint. 

"The USD 50 billion plus incentives from the US may be utilized by then, and firms will look to expand globally, and India would be a good choice. By then, markets like India, too, will have evolved to a stage where these global firms will see benefit in setting up advanced semiconductor manufacturing here," Satya Gupta, chief executive and founder of Electronic Products Innovation Consortium (EPIC) Foundation, told Mint. 

Five times larger than India’s production linked incentive scheme (PLI) scheme for semiconductors the act has a total outlay of USD 53 billion.

The top ten companies that led semiconductor production in 2021 are Samsung, Intel, SK Hynix, Micron, Qualcomm, Broadcom, MediaTek, Texas Instruments, Nvidia and AMD.

Currently India does not have an ecosystem in place for advanced semiconductor manufacturing, but companies like Tata group and Vedanta have expressed interest in setting up chip facilities. (KNN Bureau)