India To Offer $1 Billion Reward To Every Chip-Maker Who ‘Makes In India’

From cars and microwave ovens to computers and smartphones you’re reading this piece on–inside every one of them are tiny unseen pieces of tech called microprocessors or chips that make it all possible.

These are your typical silicon chips that are basic building blocks of modern computation and the most crucial and expensive component inside your gadgets.

But semiconductors are facing an unprecedented global shortage, thanks to the explosion in demand during the Covid-19 pandemic. And that has set the alarm bells ringing. So much so that car manufacturers such as Ford, Nissan, Volkswagen, Fiat Chrysler and Toyota had to cut back production. And with companies panic buying chips to shore up stocks, the shortage has increased the prices of final products.

India’s billion dollar cash incentive

And to fill that manufacturing void of electronic products, India is reportedly planning to offer more than $1 billion in cash to each semiconductor company that sets up manufacturing units in the country.

A senior government official told Reuters that the government as well as private companies will mandatorily procure ‘made in India’ chips so that the new fabrication units have assured buyers for their product.

India is currently the world’s second-biggest mobile manufacturer after China and looks to establish reliable suppliers for its electronics and telecom industry, especially after the military and diplomatic standoff with Beijing last year.

Intel (US), Samsung (South Korea) and TSMC (Taiwan) are The Big Three chip manufacturers. While the former two can design, manufacture and sell chips from end to end, TSMC is the undisputed leader, in terms of sheer scale, sophistication and reach, accounting for more than half the total market share of foundry business.

Source: Reuters


  • Shantanu K. Bansal

    Founder of IADN. He has more than 10 years of experience in research and analysis. An award winning researcher, he writes for the leading defence and security journals, think-tanks and in-service publications. He is a senior consultant at the Indian Army Training Command (ARTRAC), Shimla. Contact him at:

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