As everyone knows, India is a developing country, but some countries play a special role in it’s development. These countries primarily include America, China and Russia. But somewhere in technology, India lies behind. India is highly dependent on China for many things which includes machinery, auto components and many more. Semiconductor is a product which China, Taiwan, South Korea jointly supply to India in a large quantity.
A semiconductor is a material with a conductive power. It is in the form of a chip. It is not a conductor nor an insulator, because a conductor allows large number of current to flow where as an insulator does not allow single number of current to flow but the semiconductor allows medium level of current to flow. Examples of semiconductor are Silicon (Si), Germanium (Ge), Gallium (Ga), etc. Semiconductor is a used in almost all the advanced appliances which we use in our day-to-day life. Semiconductor are used in wide-range in automobile or handsets as well.
Many countries like China, Taiwan, South Korea, etc are great manufacturers of semiconductor but Indian Government has now decided to build a semiconductor manufacturing plant in India. According to the recent reports, Indian Government has planned to setup $10 Billion incentive package to semiconductor manufacturing companies. The government has also decided to include display application, components manufacturing and some basic and advance components to be manufactured. Government has scheduled to implement this package over the next 6 years. GOI is also planning to set 20 units of such plants all over India. They have also decided to add some fabrication units for display, in which 10 units will be specially manufactured for display and semiconductor.
Consortium of investors by Abu-Dhabi base fund Next Orbit Ventures has shown interest in setting up in India. In India, Tata Automobile Company and many companies have come forward in contribution for manufacturing and assembly department. The government also assures the sellers to that it will be a buyer and provisions will be made for private markets as well. They had previously planned for a manufacturing hub in India but due to lack for infrastructure, power supply and inefficient bureaucracy, the plan was not successful.
This package will book India’s manufacturing hub as it will not depending on other countries for a primary component, the semiconductor. It will also help in building the India economy better. This scheme will be gives to cabinet for approval and the Ministry of Electronics and Information Technology.
I am first year finance student curious to know more about financial market. I love to read, write and learn new things. I love to make new experiences. With learning and experience the blogs we write tend to spread good insights among the readers.