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India to make second foray into chip manufacturing as demand seen rising

Country's chip industry has another chance amid the global trend toward domestic semiconductor manufacturing.

Chip shortage, Semi conductors
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The data used is obtained from broad trade categories but can be considered representative of the overall trend

Sachin P Mampatta Mumbai
The United States of America, on August 9, signed the Chips and Science Act to provide $52.7 billion in government support to domestic semiconductor companies. The European Union is working on a similar legislation. The Indian government in December 2021 approved a $10 billion (Rs 76,000 crore) package for the semiconductor industry.

The state incentive could mark the beginning of India’s second chance at developing a large-scale semiconductor industry. It held on its own against Asian countries in the late eighties, before a fire gutted the state-owned Semiconductor Complex Limited (SCL) in 1989.

India’s imports have surged since then as