India to reopen application process for $10 billion to invite global chipmaking companies into country

India is set to revive the plans to lure in the prospective manufacturers of chip into the country since the projects already disclosed, including Anil Agarwal’s $19 billion plan, are taking time more than expected to get off the ground.

It has been revealed by the people familiar with the matter that New Delhi is planning to reopen the application process worth $10 billion in incentives and assistance to encourage the local chipmaking. Also, unlike previous time, when the submissions were time bounded by 45 days, this time the process is kept open-ended, shared by sources who wishes to stay anonymous. This move comes after the initial effort launched last year attracted only three applicants, all of which have made little progress so far.

India is joining the club of countries such as USA to reduce it’s dependency on other countries such as China and Taiwan for expensive chip imports, by manufacturing it in their home countries. The effort has yet to result in any major global chip making company to move to South Asian county, underscoring the major challenge supply chain shifts involve.