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Intel May Get a $10 Billion Subsidy to Build Chip Foundry in India

The semiconductor industry has grown in prominence during the pandemic, with the shortages making everyone feel the sting. As a result, Western countries are offering chipmakers various subsidies and incentives to establish manufacturing facilities on home soil. At the moment, nearly two-thirds of all advanced chips are manufactured in Taiwan, with the rest built and assembled in China and Korea.

With most East Asian countries investing heavily in semiconductor manufacturing, India is feeling the pressure to keep up with its peers. According to Ashwini Vaishnav, India’s Minister for Electronics & Information Technology, Intel might have already accepted the country’s invitation. In a Tweet, he welcomed the chipmaker to India, without providing any further information.

The Union Cabinet has approved a $10 billion incentive package to attract international semiconductor and display manufactures. Out of these, Intel is the most likely candidate as TSMC, Samsung, and SMIC would prefer to set up facilities in their own backyard rather than a country lacking in infrastructure and workforce.

This is a far cry from the US Congress’ $52 billion bill, but it’s a good start for a country with virtually no wafer manufacturing facilities. The country is offering a 50% credit for eligible expenses for chipmakers wanting to set up a plant, in addition to setting up compound semiconductors, silicon photonics, sensors fabs, etc.

Intel India is Intel’s largest design center outside of the U.S., and we have been investing in accelerating innovation and design engineering in India over the last two decades. However, we have no new plans to announce at this time.”

Intel Rep

Intel hasn’t confirmed anything just yet. In a statement to Business Today, a company representative stated that Intel India is the chipmaker’s largest design center outside the US, with nearly two decades of experience and history. He refused to comment on the foundry developments.

Via: Livemint

Areej

Entrepreneur, tech-analyst, PC gamer, and hardware enthusiast. Former co-founder of Techquila (2017-2019), a fairly successful tech outlet. Been working on Hardware Times since then, an outlet dedicated to computer hardware and its applications.
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