From electronics to semiconductor, MNCs in search of policy stability

Global manufacturing majors seek a less unpredictable policy environment before investing more 'China-Plus-One' dollars in India

Surajeet Das Gupta New Delhi
MNCs with permanent establishment to pay tax on pre-negotiated income

Prodded by their automobile clients to hedge their bets against China global Taiwanese-headquartered outsourced semiconductor assembly and test companies (OSAT) are scouting for other Asian destinations to shift part of their production. Their favourite alternatives: Malaysia, Vietnam and the Philippines. Note, India is missing from that list. And this is despite an attractive financial incentive scheme for OSAT players.
The reason, said a senior executive of a US chip company who had a meeting in Taiwan just a few weeks ago, is that “they want more predictability in government policy because they plan to put in big money.” OSAT players, he argued, want some alignment by the Indian revenue department to global incentives offered in countries competing to attract foreign investment.
There is no doubt that the Indian government is leveraging like never before the opportunity opened up by geopolitical tensions between the US and China.

Also Read

India's semiconductor market to touch $64 bn by 2026: Counterpoint-IESA

Centre announces $2 bn investment in Mohali's Semiconductor Laboratory

Does China plus one strategy mean advantage India?

Vedanta-Foxconn JV set to get govt approval for its chip-making plant

Samsung Galaxy S23 Plus review: Packs quite a punch in slender form factor

Need more Indian brands selling local tea globally: VAHDAM CEO Bala Sarda

AAI back on profitable runway; reports Rs 3,400 profit in 2022-23 fiscal

A new fintech world is upon us amid funding drought, lower valuations

SpiceJet insolvency row: DGCA's early warnings reveal brewing trouble

For Air India, goodbye to state control doesn't mean Tata to troubles

First Published: May 21 2023 | 6:12 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to