India to reopen process for $10 bln in chip incentives -Bloomberg News (updated)

Tower Semiconductor

10/05/2023 03:15

(Adds details from the Bloomberg report and background)
       May 10 (Reuters) - India plans to reopen the application
process for $10 billion in incentives and assistance to
encourage chip manufacturing, as previously announced projects
are taking too long, Bloomberg News said on Wednesday, citing
people familiar with the matter. 
    India is keeping the process open-ended, doing away with a
previous 45-day requirement to submit applications, the report
said. 
        The South Asian country now plans to allow companies to
apply again and is set to accept applications until its budgeted
$10 billion in incentives is exhausted, the report said. 
  
        The previously announced short window for applications
led to just a few applicants for the scheme, including a
partnership between Vedanta Resources Ltd and Taiwan's Foxconn
 2317.TW , and a consortium that includes Tower Semiconductor
Ltd  TSEM.TA , Bloomberg said. 
        Last September, Vedanta and Foxconn, formally called Hon
Hai Precision Industry Co, signed a pact with the western Indian
state of Gujarat to invest $19.5 billion to set up semiconductor
and display production plants.
  
        India announced the incentives to help make the country
a key player in the global chip supply chain. 
  

 (Reporting by Jose Joseph in Bengaluru; Editing by Tom Hogue
and Christian Schmollinger)
 ((Jose.Joseph@thomsonreuters.com;))