India to reopen process for US$10 billion in chip incentives

India to reopen process for US$10 billion in chip incentives

To attract new companies looking to set up manufacturing.

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India plans to reopen the application process for the US$10 billion (S$13.27 billion) in incentives and assistance to encourage chip manufacturing, as previously announced projects are taking too long, Bloomberg News said on Wednesday, citing people familiar with the matter.

India is keeping the process open-ended, doing away with a previous 45-day requirement to submit applications, the report said.

The South Asian country now plans to allow companies to apply again and is set to accept applications until its budgeted US$10 billion in incentives is exhausted, the report said.

The previously announced short window for applications led to just a few applicants for the scheme, including a partnership between Vedanta Resources Ltd and Taiwan's Foxconn, and a consortium that includes Tower Semiconductor Ltd, Bloomberg said.

Last September, Vedanta and Foxconn, formally called Hon Hai Precision Industry Co, signed a pact with the western Indian state of Gujarat to invest US$19.5 billion to set up semiconductor and display production plants.

India announced the incentives to help make the country a key player in the global chip supply chain.

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