Semiconductor-IT Sector: ₹10,000 Crore Foreign Investment Possible

The Global Capability Center (GCC) and the semiconductor policy have opened new avenues for investment in Madhya Pradesh. The GCC is expected to bring in ₹5,000 crore in Foreign Direct Investment (FDI), while companies working in semiconductor components such as transistors, motherboards, junctions, integrated services, and diodes have proposed an investment of ₹5,500 crore.

On February 7, the Electronics Industries Association of India (LCNA) held its board meeting, where 18 companies participated. All of them immediately proposed investments. The companies have requested 250 acres of land in areas surrounding Bhopal, Indore, and Gwalior.

This sector is expected to see the first-ever major investment. In the semiconductor industry, wafer components are very expensive, with industries located in Gujarat and Assam. The central government provides financial incentives up to 50% for companies in this sector. Madhya Pradesh has announced an additional 25% incentive for companies investing in semiconductor components.

The GCC is expected to bring ₹5,000 crore in FDI over the next five years. Companies establish GCCs to expand their business operations. These centers offer research, development, IT services, and other related services. Recently, in the central budget, the government announced the establishment of GCCs in Tier-2 cities like Bhopal and Indore.