According to a credible article, a multibillion dollar incentive program for firms that manufacture semiconductors may be introduced once the new administration becomes office. On June 4, the results of the current Lok Sabha elections 2024 will be announced.

The deal would adhere to the Rs 76,000-crore plan for domestic chip production that was unveiled in December 2021. The analysis claims that the old scheme is almost at its peak of use.

According to sources in the paper, work is now ongoing on a new plan that will be larger than the previous scheme and unveiled following the elections. India has been attempting to establish itself as a chip manufacturing hub in recent years by offering incentive programs to entice businesses.

In order to facilitate access to low-cost finance and aid in the development of a capital market system for the high-tech industry, the India Cellular & Electronics Association (ICEA) encouraged the government to recognize the semiconductor industry as a priority sector.

Apple, Foxconn, Lava, and other Chinese mobile manufacturers are all represented by ICEA. The group also called on the government to support chip design companies, the expansion of the skilled semiconductor workforce, and investments in renovated fabs.

According to a credible source, the government is also developing a regulatory framework to mandate the purchase of domestically manufactured semiconductors, therefore reducing reliance on chip imports.

Early this month, US automaker Tesla signed a deal with Tata Electronics, which is developing a chip facility in India, to acquire semiconductors for its international operations, lending support to the central government's efforts. The facility of the Tata group company aims to draw talent from Taiwan. It will be constructed in partnership with PSMC at an estimated cost of Rs 91,000 crore.