TAIPEI (Taiwan News) – The Indian government is in talks with Taiwan Semiconductor Manufacturing Corporation (TSMC) as it rolls out a massive incentive plan to lure semiconductor industry players to its shores.

Senior government officials are in talks with TSMC and other players like Intel and AMD, according to a report from the India time.

The Indian bureaucracy is apparently working overtime to finalize the capital support plan, with the operation being tightly orchestrated from the prime minister’s office.

“The government is ready to talk about capital support. We are closer to it than ever before, ”a leading source involved in the process told Indian media.

Tariff cuts for basic components, financial support for capital spending and production-related incentives are all on the table, according to the source. Delhi is confident that its gargantuan domestic market will attract chipmakers to locate in the country, with the government expecting domestic electronics production to quadruple at least in the next four years.

India currently imports almost all of the chips it needs for manufacturing electronics. Launching a local chip ecosystem is no small feat and requires a significant upfront investment, and the country’s previous attempts to attract investment have had mixed results.

Foxconn of Taiwan already has a factory in southern India, which spent US $ 1 billion (NT $ 27.8 billion) last year to expand.