How Modi government plans to help local chip firms grow
What's the story
The Indian government is working on a plan to help local semiconductor chip firms negotiate better terms with global foundries. S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY) revealed that the government plans to pool orders from Indian fabless semiconductor companies. This strategy aims to enhance their bargaining power with international manufacturing plants.
Industry support
Pooling orders to attract private capital
The pooling of orders is a long-standing demand of the industry and is part of a larger strategy to help Indian semiconductor companies scale.
The government hopes this will attract more private capital and help retain intellectual property in India.
Despite being reliant on global foundries and suppliers, these measures are aimed at making domestic firms more competitive on a global scale.
Sector boost
Rethinking IP and market support for semiconductor sector
The government's approach also includes rethinking capital, intellectual property (IP), and market support for the semiconductor sector.
These steps are intended to ensure that Indian firms can compete with their global counterparts while still being able to leverage international resources when needed.
The initiative is part of a broader push by India to become a major player in the global semiconductor supply chain.