Many companies, including tech, are struggling with chip shortages worldwide. Chip shortage has affected many industries ranging from electronics, auto, air-conditioning.
The government has said that five companies have proposed to invest $20.5 billion (1.53 lakh crore) to make electronic chips in India.These offers have come under the Semicon India program. Due to the manufacture of chips inside the country, the waiting and price of vehicles can come down.
Help sought with investment under Semicon India program
Vedanta, Foxconn, IGSS Ventures, and ISMC have proposed investing in India for $13.6 billion in chip manufacturing. These chips will make 5G devices, electric cars, and many more. At the same time, these companies have also sought the help of $ 5.6 billion from the government under the Semicon India program.
The Ministry of Electronics and Information Technology has said that there has been a good response for making semiconductor and display manufacturing. At the same time, two other companies, Vedanta and Elect, have offered $ 6.7 billion to make the display fab.
It has also sought help from the government for a $ 2.7 billion stimulus. South Asian countries invested $15 billion in the semiconductor market in 2020. With this, it is estimated to reach $ 63 billion by 2026.
Semicon India program got a good response
The government approved the Semicon India program on December 15, 2021. Applications were invited in the first phase until February 15, 2022. Under this, these companies have given applications to make chips.
Even after the application was called in such a short time, it has got a good response. Its purpose is to accelerate the slowing economic pace during the pandemic. Due to the shortage of chips globally, its demand is expected to increase further by 2024.
Waiting will also be less with the price of cars
Many customers have to wait for months to buy a car. Companies are booking the vehicle but cannot deliver it to the customer on time. Chip-making in India will reduce the waiting period for vehicles. At the same time, these chips will be used to make electric cars and 5G devices to get the chip on time.
Due to the manufacture of chips in the country itself, many types of taxes will not be levied, due to which companies will be able to get the chip at a lower price, which will also reduce the cost of cars. At the same time, new employment opportunities will come, and India’s economy will also get a boost.
Published By – Vanshu Mehra
Edited By – Kritika Kashyap
