India has received proposals worth $20.5 billion from five companies to manufacture semiconductor fabs and display fabs locally, according to a government statement.

Companies including Vedanta, in joint venture with Apple vendor Foxconn, Singapore-based IGSS Ventures Pte and ISMC have proposed $13.6 billion investments for manufacturing the chips, which are used in a wide array of products ranging from 5G devices to electric cars. The three companies have sought support of $5.6 billion from India’s federal government under its incentive plan, Bloomberg reported.

“Despite aggressive timelines for submission of applications in this greenfield segment of semiconductor and display manufacturing, the scheme has elicited good response,” the Ministry of Electronics and Information Technology said in the statement.

Further, two companies — Vedanta and Elest — have submitted proposals worth $6.7 billion to manufacture display fabs and have sought incentives of $2.7 billion from the government, according to the statement.

India’s semiconductor market is estimated to reach $63 billion by 2026 compared with $15 billion in 2020. The incentive program is an effort by Prime Minister Narendra Modi government to boost the share of manufacturing in the economy and reverse the pandemic induced slowdown. The incentives were announced amid a prediction that a global chip shortage is likely to extend until early 2023 and demand may remain above the long-term expectation in 2022.

“India Semiconductor Mission, which has been set up as a dedicated institution for Semicon India Programme, has received 5 applications for Semiconductor and Display Fabs with total investment to the tune of USD 20.5 Bn (INR 153,750 crore),” the government statement said.

The applicant companies under the semiconductor and display fab schemes have been issued acknowledgment by India Semiconductor Mission (ISM), which will coordinate with the applicant companies who have also reached out to states to provide access to world class infrastructure, a PTI report added.

Four companies, SPEL Semiconductor Ltd., HCL, Syrma Technology and Valenkani Electronics, have registered under this scheme for semiconductor packaging and Ruttonsha International Rectifier Ltd. has registered for compound semiconductors.