Only days after the Union Cabinet’s announcement on setting up semiconductor plants in India to boost research and innovation in the sector to empower the ‘Aatmanirbhar Bharat’ initiative. Chipmaker major, Intel Corp., is in thoughts of establishing a semiconductor manufacturing unit in the country.

This decision was welcomed to India by Ashwini Vaishnaw, Minister for IT and Electronics, who tweeted “Intel - welcome to India”.

Along the line, the minister also expressed his appreciation of incentives extended by the central government regarding semiconductor designs and manufacturing. These incentives are said to pour in for six years to eliminate issues if brands were to run into production shortages, while ensuring security over the country's critical information infrastructure. Adding more to that power, the scheme is also believed to shape India into a global hub for consumer electronics, clubbed with employment opportunities and investments worth Rs.1.7 lakh crore.

These are the expectations of the scheme, which is believed to breathe life into these plans by providing fiscal support, tariff reductions on chip components added with the setting up of multiple fab units.

India currently has a tangled semiconductor chip manufacturing environment and imports all of its semiconductors. India, on the other hand, is a strong semiconductor chip design base. Chip design is a more software-intensive process, and India has a ‘stronghold over chip design’, according to the Ministry of Electronics and Information Technology.

“Congratulations to the Ministry of Electronics and IT, Ashwini Vaishnaw, Rajeev Chandrasekhar for Semiconductor design and manufacturing incentives for India as hub for electronics and semiconductors,' tweeted Thakur”.

“Glad to see a plan laid out for all aspects of the supply chain: talent, design, manufacturing, test, packaging and logistics”, he tweeted.

Earlier this month, the Union Cabinet led by Prime Minister, Narendra Modi, had given their stamp of approval to offer budget weighing Rs.76,000 crore for designing and manufacturing semiconductors in the country.

“Prime Minister Narendra Modi has taken a historic decision in the field of electronics in which the development of a complete ecosystem could take place within the country including design, fabrication, testing and packaging. It would take investment of Rs 76,000 crore. Today we have reached USD75 billion in electronics manufacturing in 7 years. With the pace that we are moving at, in the next 6 years, we will reach USD300 billion in electronics manufacturing”, said Vaishnaw.

Recently, Tata Group has declared the establishment of its very own semiconductor manufacturing unit in three states namely Karnataka, Tamil Nadu and Telangana. The work for this project is said to start next year with the employment of about 4,000 people to keep it up for the long run.