By C Somayaji and G Chakravorthy/Bloomberg
Bangalore: Hindustan Semiconductor Manufacturing Corp., an Indian chip-manufacturer, plans to make chips for mobile-phones when it sets up factories in India, the world’s fastest growing wireless market.
The company will select a location for one of the manufacturing sites within three to four weeks, Deven Verma, chairman of Hindustan Semiconductor, said in a televised interview on 4 April in Mumbai.
Hindustan Semiconductor, founded by a group of Indians based in California, plans to invest as much as $4.5 billion (Rs19,318 crore) in two manufacturing plants in India. The company will license technology from Infineon Technologies AG, Europe’s fourth- biggest maker of semiconductors, Verma said.
India last month began offering a package of incentives for chipmakers, including interest-free loans and subsidies, as it seeks to attract as much as $5.5 billion in investments for chip and electronics factories over three years.
Subsidies will be provided for as much as 25% of the capital needed for companies in the first 10 years, Dayanidhi Maran, India’s federal minister for communications, said on 22 February. The incentives came into effect on 21 March.