Govt readies RFP seeking proposals from companies to set up semiconductor plants, Auto News, ET Auto

The government will soon place out a request for proposal (RFP) doc looking for official applications from companies to set up semiconductor crops, senior officials claimed.

The officials claimed various companies confirmed curiosity previously this calendar year to set up these types of fabs (fabrication units) and that the government would choose on the quantum of subsidy only soon after it receives specific proposals.

“We have to just take last approvals for issuing the RFP… It really should transpire soon. How substantially support can be presented to the companies will be made a decision soon after we acquire the applications and soon after discussing with stakeholders on their support necessities,” a senior formal immediately concerned in the subject claimed.

Location up fabs is high priced and the subsidy is enormous, so the government will be “careful” before offering approvals, the formal extra. “We have to see irrespective of whether the bash is legitimate, how substantially income they will be bringing, and so on.”

Following the government issued an expression of curiosity previously this calendar year, almost twenty companies are considered to have demonstrated willingness to commit in the sector.

Tata Sons chairman N Chandrasekharan also not too long ago spoke about the salt-to-application conglomerate’s strategies to enter the semiconductor place, to minimize dependence on Chinese imports.

A worldwide lack of chips – which has crippled various industries these types of as automobiles and electronics – thanks to the Covid-19 pandemic, has spurred several companies to diversify functions to more recent locations.

The Ministry of Electronics and IT (MeitY) has not divulged the quantum of incentive it would deliver companies. Even so, the government is considered to set apart $1 billion for a fab, which needs a whole expense dedication of $two billion-$five billion or more.

The government formal claimed 5G, details centres and semiconductors ended up the subsequent locations of aim for the government, which has been effective in attracting companies to set up mobile telephone manufacturing crops through incentive techniques over the earlier couple a long time.

The government is open up to location up both of those common fabs as perfectly as new-age types like the Gallium Nitride semiconductor fabs, which are rather less costly to establish.

“We are open up to both of those domains, both of those can appear at the exact same time, is dependent on the curiosity that we get from the gamers,” the formal claimed, including that all top rated fab makers have demonstrated a willingness to participate.

Last time round, the government experienced made available a funds expenditure subsidy of up to forty% to set up fabs, but none of the permitted proposals took off.

The business is hence expecting a greater offer this time, claimed Arun Mampazhy, an qualified on semiconductor fab technology.

“India has been too sluggish in finalising the coverage. Any more delay from India’s side could direct to getting rid of one particular of the couple fascinated foundries also. Huge shots like TSMC or Samsung or Intel are very likely to prefer currently proven countries and so it is significant for India not to shed provides it currently has,” he extra.