India believes that chipmakers will start producing locally within 2-3 years.

According to foreign media reports, Indian Minister of Information and Technology Ashwini Vaishnaw said that after India provides incentives for the semiconductor industry, at least a dozen semiconductor manufacturers are expected to start setting up factories in the country in the next 2-3 years.

The Modi government is working to develop a complete ecosystem for chip manufacturing and will start accepting applications under its incentive scheme from January 1, Ashwini Vaishnaw said in an interview.

"the response was very good. All the big companies are negotiating with their Indian partners, and many people want to come here directly to build their teams. " Ashwini Vaishnaw said.

India intends to participate in several stages of chip manufacturing, including chip and display wafer factories and semiconductor packaging. Ashwini Vaishnaw said India will start manufacturing mature components from 28 nm to 45 nm and will ask candidate companies to provide a roadmap to shift to more advanced production technologies over time. TSMC and Samsung, the leading manufacturers of the world's most advanced chips, recently announced new wafer plants in the United States and Japan, indicating their willingness to expand internationally.

Last week, Modi's government approved a six-year plan worth 760 billion rupees ($10 billion) to boost local chip production, a move that could help the South Asian country reduce its dependence on expensive imported materials in the face of global shortages. these materials are used in everything from mobile phones to electric cars. At present, India relies on overseas manufacturers for almost all its semiconductor demand.

From Japan to Europe to the United States, India has now joined these countries, setting aside billions of dollars in subsidies for domestic chip manufacturing after global shortages of key components hit many important industries and exposed economic vulnerabilities.

Vaishnaw said the government had notified the plan and expected approval from the compound semiconductor division and design and packaging companies within the next 3-4 months.

"in the next 2-3 years, we will see at least 10-12 semiconductor factories put into production, we will see that display wafer factories may eventually be completed or put into production, and at least 50-60 design companies will start designing products in the next 2-3 years." Vaishnaw said.