The Indian government has announced support of $30 billion for its technology sector to build a semiconductor supply chain in the country, according to ET, citing a top Indian diplomat to Taiwan.

The fund is aimed at improving the local production of semiconductor displays, advanced chemicals, networking, telecom equipment, and batteries and technology.

Two chip facilities and display plants will gulp $10 billion, the electronics industry will take $7 billion while $13 billion is devoted to telecommunications, networking, solar photovoltaic, and battery cells.

Why this matters

The chip supply shortage has upturned the global demand for semiconductors. Thus, India is keying into this opportunity by investing in local production to meet a target of 10% global supply by 2030.

The country plans to supply mature chips including higher-end organic light-emitting diode (OLED) displays usable in foldable smartphones. This initiative will attract foreign investors to the country and improve its economy.