As per the latest report by Business Korea, the Indian government wants Samsung Electronics to set up a semiconductor plant in the country to expand its semiconductor production. India has also announced that it will give subsidies to all the interested semiconductor giants willing to set up a semiconductor plant in the country.
Notably, the Chief Minister of Tamil Nadu has requested Samsung to build a semiconductor plant in the country and avail the multiple subsidies that the Indian government has decided to provide to all companies. India had prepared a $10 billion incentive plan in 2021 to promote semiconductor production in the country and also curb the ongoing worldwide shortage.
If Samsung gives a nod to this plan, then it could prove beneficial for them as the company already manufactures phones in India. In fact, it already has the world's biggest mobile manufacturing plant in Noida, which is spread over a 35-acre area.
Semiconductor consumption is expected to increase from $21 billion in 2019 to $400 billion in 2025 in India, according to KOTRA Mumbai Trade Center and the India Electronics and Semiconductor Association (IESA). Although the Indian semiconductor design market grew from $14.5 billion in 2015 to $52.6 billion in 2020, it doesn't have sufficient manufacturing plants to produce chips.
While the talks are in their early phases, it will be interesting to see how the talks unfold, as it seems to be a mutually beneficial deal.
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