India convinces TMSC and Intel to set up semiconductor plants in the country

India is in talks with global semiconductor chipmakers GlobalFoundaries Inc., Intel Corp., and Taiwan Semiconductor Manufacturing Co. to set up local operations, part of efforts to congregate more high-tech manufacturing in the country.

Late last year, the Indian government revealed a $10 billion incentives plan, proposing to cover nearly half of a project’s cost to attract display and semiconductor manufacturers to set up base in India. The nation has set itself the ambitious goal of emulating its neighbor, China and becoming the electronics mega-factory of the world.

Rajeev Chandrasekhar, Minister of State for technology and entrepreneurship, said he personally was making most of the pitches to the big semiconductor manufacturers. He added that they were meeting with the CEOs, talking and making presentations to them.

A venture between Vedanta Group and Foxconn Technology Group has shown interest in setting up semiconductor fabrication facilities within the nation, while TMSC and Intel are yet to offer any commitments. Challenges such as wobbly infrastructure and power outages remain in the country.

India’s semiconductor manufacturing plans come when leading world economies are increasingly putting resources into securing their domestic chip production.