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With the rapid development of high technologies in the world, all kinds of microprocessors are becoming increasingly important, the trade of which brings huge profits.
According to the New York Times, according to the government of India, the microprocessor chips that provide all digital devices will soon be fully manufactured in India. This bold statement shows that Prime Minister Narendra Modi believes that he can bring India to the highest level of production of advanced technologies, the publication notes.
To implement these plans, the Indian government is ready to spend at least $ 10 billion in subsidies, ready to cover 50 or even 70 percent of the costs of any company related to the development and production of chips. Modi's plans include the creation of something like a "Silicon Valley" called a "Semi-con City" in his home state of Gujarat. According to New York Times columnist Alex Trevelly, Modi is betting that he will be able to lure private companies here not only from all over India, but also from all over the world.
India's traditional technology clusters around Bangalore have allowed the country to take a place in the global semiconductor network thanks to its work on the development of chips, but not on their production. And over the past two years, the government has allocated significant subsidies to turn the country into an electronics manufacturer. Since 2020, the government of India has been using incentives related to the production of chips - the more you produce, the greater your government support.
However, so far almost all advanced chips are manufactured in Taiwan, the publication notes. As concerns about China and Taiwan intensify, and chips become an integral part of all kinds of technology, it seems increasingly risky to both buyers and sellers. Therefore, there is a distribution of the production load in the world. For example, a Taiwanese semiconductor company is struggling to help the US set up its own chip manufacturing plants in Arizona with the help of President Biden's Chip Subsidy Law, says Trevelly.
- the New York Times columnist noted.
Despite this, New Delhi still makes bold statements regarding the fact that a significant part of the world's chips will be produced in India in the near future. According to Trevelly, it took TSMC and other Taiwanese companies "decades and countless billions of capital investments" to achieve what they have achieved.