In the midst of the shortage of semiconductor chips, it is not only companies but also countries that are struggling to increase silicon production. Earlier this month, the Government of India approved an incentive scheme for semiconductor development.
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The move will include setting up more than 20 production units over 6 years and will work to incentivize not only large existing companies but also startups that want to design and manufacture semiconductors. Qualified companies can receive up to 50% of their set-up and operating costs for new brands in India. The huge incentive scheme of Rs 76,000 (about $ 10 billion USD) also includes plans to train semiconductor engineers, so it is clear that the country is serious about increasing chip production.
These incentives already seem to be working for India, capturing Intel President of Foundry Services, Randhir Thakur, on Twitter (via Techdator). Thakur praised the incentives in one tweet it was that time retweeted by the Indian Prime Minister, Ashwini Vaishnaw, welcoming Intel to India.
Intel previously sought to expand chip production in China. However, it was discouraged by the US, which currently has its own federal aid program in place, which should mean that $ 52 billion is invested in the manufacture and development of chips in the US. Hopefully it will not have any security issues related to chip production in India, or we could see similar setbacks if, or more likely, when Intel officially gets involved.
The chip shortage is still a huge problem when it comes to manufacturing a wide range of technology, and Intel, TSMC and IBM all agree that the chip shortage is unlikely to stop in the near future. Many do not see it ending until at least sometime in 2023, so it will be another long year for PC gamers who want to upgrade. But with all the effort that goes into increasing production, it is also likely that we could see this shortage turn into oversupply. We could buy literal bags of chips in 2024.