India approves $13.3 billion for fresh semiconductor push

(Reuters) - India's cabinet approved the expansion of a key semiconductor programme with ​fresh capital of 1.28 trillion rupees ($13.30 billion) ‌on Wednesday, Information Minister Ashwini Vaishnaw said.

The capital will be deployed to develop intellectual properties and chip ​designs, setting up more fabrication plants and ​boosting research and development, the government said ⁠in a statement.

Wednesday's announcement comes roughly five ​years after India unveiled a $10 billion incentive plan, as ​part of a deepening push to establish the country as a global electronics production hub.

India has approved 12 ​manufacturing units and 24 semiconductor design projects ​under the 2021 incentive plan so far, it said.

India's cabinet ‌also ⁠approved 625 billion rupees towards a five-year long programme aimed at boosting mobile phone manufacturing in the country, Vaishnaw said.

The programme provides incentives ​on eligible ​sales for ⁠manufacturing of mobile phones in India at differentiated rates ranging from 2.25% ​to 5%. The programme also provides ​an ⁠additional incentive of up to 1.5% linked to domestic sourcing of key components.

The programme is expected ⁠to ​generate around 60,000 direct jobs, ​the government statement added.