Global Watch: India to spend 5 billion to build a fab

As India's semiconductor manufacturing plans gradually face a development bottleneck, the Indian government has launched a revitalization plan and expects to build at least two wafer fabs in China.

The Indian government is deliberating on the establishment of a committee to seek technology and investors that can lead the project. The committee will include a consultant who can advise the prime minister on related technical issues, the chairman of the National Manufacturing Competitiveness Committee, and M who used to be chairman of the Board of Directors of Semiconductor Complex. J. Zarabi.

In addition to looking for technology and potential investors, the committee will also advise the government to increase support for the wafer program, and the extent of subsidies and sponsorship. The group’s proposal is expected to be sent by July 31st.

The key goals of the fab program include the development of relevant policies to encourage investment in Indian electronics manufacturing and the establishment of an electronic development fund. The fund will provide sponsorship funds to create a settlement for electronics manufacturing.

The government said that the fab will also actively seek to develop "localized content and value-added services."

It will cost 5 billion U.S. dollars to build these two fabs. However, the amount of government financial support is still under negotiation.

“Fabrics have an impact on driving downstream and upstream industries,” according to a government statement. “It has a considerable impact on the development of VLSI design software, solutions and services. It will also lead innovation and R&D."

In order to build India's electronic hardware industry, the fab project is the latest development in a series of work projects. Previous efforts have failed to yield definitive results. Part of the reason lies in the industry's argument that India needs to develop the domestic wafer industry. Continued efforts have been made by the Indian government to propose to provide financial incentives to build fabs. It remains to be seen whether these recent efforts and plans will be successful.

The Indian government estimates that by setting up its wafer manufacturing industry in 2020, it is expected to create 30 million direct and indirect jobs for India.

However, from past to present, India has not really attracted any wafer manufacturers to establish fabs here. In the 1950s, a group of engineers sent from Silicon Valley to India established Semindia in India, but the company later transformed itself into a communications equipment supplier. And Hindustan Semiconductor Manufacturing Corp. (HSMC) has also selected Infineon Technologies as its "Fab City" planning partner to help build two wafer fabs in the nearby Hyderabad Science Park in Andra Pradesh .

However, the fab plan for SemIndia and HSMC has not been implemented, and the government-sponsored Fab city plan eventually turned to the solar industry. Now, on the occasion of the new plan, whether Fab City is still the best place to establish a wafer manufacturing industry has not been discussed.

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