The Cabinet has given a thumbs up to the Rs 76,000-cr incentive scheme for semiconductors. Under this scheme, India will set up more than 20 semiconductor design, components manufacturing and display fabrication units over the next six years.
The new semiconductor policy, named as the "Programme for Development of Semiconductors and Display Manufacturing Ecosystem", will help deepen India's manufacturing base. The government has lined up an attractive incentive support for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensor fabs, semiconductor packaging and semiconductor design.
The Ministry of Electronics and IT will take necessary steps for modernisation and commercialisation of semi-conductor laboratory (SCL). The IT Ministry will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.
The scheme for setting up of semiconductor fabs and display fabs in India will extend fiscal support of up to 50 per cent of project cost to eligible applicants.
“Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs)… and semiconductor linked design, and facilitating the growth of not less than 20 such companies which can achieve turnover of more than Rs 1,500 crore in the coming five years,” the official release said.
