VR Zone spreads news that IBM and STMicroelectronics are considering to build chip manufacturing plants in India. The Indian government announced it will offer incentives to hardware markets to set up shop in the country and is said to be in talks with IBM and STMicro for a deal worth around $8 billion.
The federal government is set to offer lucrative incentives to chipmakers to set up shop in the country. They include subsidies on capital spending, interest-free loans and tax breaks. India’s Communications and Information Technology minister Kapil Sibal said in a statement earlier today that the country needs no less than 15 fab units.
Sibal said that offering such incentives was the only way to lure chipmakers to establish fabrication plants within the country. With India’s demand for electronics set to reach $400 billion by the year 2020, the government is looking to local manufacturing units to meet the estimated demand.
Consortiums that include the likes of IBM and STMicroelectronics have shown interest in establishing semiconductor wafer plants in the country. Sibal said that the two consortiums have two months to submit more detailed bids that highlight production and marketing plans.