India Approves $10 Billion Plan To Lure Semiconductor And Display Makers

India has approved a $10 billion incentive plan to attract semiconductor fabricators and display manufacturers, its technology minister said on Wednesday, as part of efforts to establish itself as a global electronics production hub.

Israel's Tower Semiconductor, Apple's contract manufacturer Foxconn and a Singapore-based consortium have all shown interest in setting up semiconductor fabrication units in India, a government source told Reuters.

Vedanta Group was also keen to set up a display fabrication plant in India, the source added.

New Delhi also approved a design linked incentive (DLI) plan to encourage 100 local companies in semiconductor design for integrated circuits and chipsets, technology minister Ashwini Vaishnaw told a news briefing.

"...Prime minister (Narendra Modi) has taken a historic decision today that will help develop the complete semiconductor ecosystem -- from the design of semiconductor chips to their fabrication, packing and testing -- in the country," he said.

India, the world's second-biggest smartphone maker, has announced the plan at a time when automakers and tech companies are grappling with a global semiconductor shortage.

Tata Group, one of India's biggest conglomerates, is also venturing into the business and is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, Reuters has reported.