A report in Livemint states that India is offering semiconductor companies $1 billion in cash to set up manufacturing units in the country as it hopes to strengthen smartphone assembly and electronics supply chain. 

This comes at a time when the world is reeling from a shortage of semiconductor chips, which has impacted India's auto sector as well. Following PM Modi's clarion call Make in India, the country has become the world's second biggest mobile manufacturer after China. Now, government officials believe it is high time for chip manufacturers to set up shop in India, limit reliance on Taiwan and establish reliable suppliers for electronics and telecom. 

"The government will give cash incentives of more than $1 billion to each company which will set up chip fabrication units," a senior government official told Reuters, declining to be named as he was not authorised to speak with media. "We're assuring them that the government will be a buyer and there will also be mandates in the private market (for companies to buy locally-made chips)."

The manner of cash disbursal isn't finalised, but the government has sought industry feedback, stated another government official on the condition of anonymity. Chips made locally will be designated as "trusted sources" and can be used in products ranging from CCTV cameras to 5G equipment.