India unveiled billions of dollars in new incentives for smartphone manufacturing and an expanded semiconductor push on Wednesday, seeking to build on its success assembling Apple’s iPhones and draw more of the global electronics supply chain away from China.
Called the Mobile Phone Manufacturing Scheme, the ₹625 billion (about $6.5 billion) program will run for five years and reward smartphone manufacturers based on eligible sales, with incentives ranging from 2.25% to 5% and an additional 1.5% for sourcing key components and sub-assemblies in India. New Delhi also committed a further ₹1.28 trillion (around $13.3 billion) to bolster domestic semiconductor manufacturing, expanding a $10 billion chip incentive program launched in 2021 with greater support for chip equipment, materials, design and research.
