Fabs: The east Asia lesson for India
2 years, 2 months ago

Fabs: The east Asia lesson for India

Live Mint  

NEW DELHI : A few days ago, the central government tweaked its ₹76,000 crore production-linked incentive scheme for semiconductors, offering fiscal support of 50% of the project cost for companies looking to set up chip manufacturing plants in India, irrespective of the chip type. FII holdings of bearish bets on indices spike Soon, pay highway toll based on size of vehicle, road stress Manufacturers’ confidence may fizzle out on weak global macros Firms, retail borrowers wary amid soaring rates India isn’t the only country trying to incentivize chip makers away from their traditional manufacturing bases such as Taiwan and South Korea. To combat the Japanese ‘threat’, American manufacturers began to move some of the lower-tech processes in the logic chips value chain, such as packaging, offshore to countries such as South Korea, Taiwan, Malaysia and Singapore. “The initial development of Taiwan’s semiconductor industry was thus similar to other Asian countries, serving as an overseas station for packaging and testing for American and European companies," the authors say. Like Taiwan, South Korea’s semiconductor industry, too, benefitted from American manufacturers’ concern over Japanese dominance of the memory chip manufacturing market.

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