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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

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

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

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