India Offers more than $1B in Cash to Semiconductor Companies that will Setup Manufacturing Plants Locally

India is offering semiconductor companies $1 billion each to build and maintain factories within their borders in an effort to shore up electronics supply chain and smartphone assembly.

The move is allegedly part of Prime Minister Narendra Modi’s “Make in India” initiative, which has helped India grow to become the second largest manufacturer of smartphones on the planet, second only to China.

Anonymous government sources told reporters at Reuters that India will be announcing $1 billion cash incentives to break ground on new factories in India. Government officials also alluded to incentives for businesses and industry leaders that would be doled out should they decided to buy products from any new factories.

Indian officials have not decided how the cash will be given out, but plan to subsidize as many semiconductor production companies as possible given the global shortage. 

Indian government officials also discussed their wishes to cut trade reliance with China, who provides a large portion of their current smartphone imports. 

No businesses have yet formally made any plans to build factories, but anonymous sources in India’s automobile industry told Reuters that Next Orbit Ventures investment fund was interested in building in India. Next Orbit did not provide comment.

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