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India in talks with TSMC on mega multibillion dollar investment plan

Foxconn spent US$1 billion expanding its factory there last year

Semiconductor (Getty Images)

Semiconductor (Getty Images)

TAIPEI (Taiwan News) — The Indian government is in talks with Taiwan Semiconductor Manufacturing Corporation (TSMC) as it rolls out a massive incentive plan to attract semiconductor industry players to its shores.

Senior government officials are talking with TSMC and other players like Intel and AMD, according to a report by the Times of India.

India’s bureaucracy is apparently working overtime to finalize the capital support plan, with the operation being closely orchestrated from the Prime Minister’s Office.

“The government is willing to talk capital support. We are closer to it like never before,” a top source involved in the process told the Indian media.

Tariff reductions for core components, financial support on capital expenditure, and production-linked incentives are all on the table, per the source. Delhi is confident its gargantuan domestic market will draw in chipmakers to set up shop in the country, with the government expecting domestic production of electronics to at least quadruple over the next four years.

India currently imports almost all the chips it needs for electronics manufacturing. Kickstarting a homegrown chip ecosystem is no small feat and requires heavy upfront investment, and the country’s previous attempts to attract investment have had mixed results.

Taiwan’s Foxconn already has a factory in southern India, which last year it spent US$1 billion (NT$27.8 billion) to expand.

Updated : 2022-01-20 04:44 GMT+08:00