Centre nods program to develop semiconductors in India

The Cabinet has sanctioned the extensive program for the advancement of sustainable semiconductor and display ecosystem in the nation. The program will usher in a new era in electronics production by rendering a globally competitive incentive package to firms in semiconductors and display production as well as design. The permission shall pave the way for India’s technological leadership in these regions of strategic significance and economic self-reliance. The Scheme for installing Semiconductor Fabs and Display Fabs in India will provide financial support of up to 50% of project cost on a pari-passu basis to applicants who are eligible and have the technology and capacity to implement such highly capital intensive and resource incentive projects. The government of India will operate closely with the State Governments to set up High-Tech Clusters with requisite infrastructure in terms of land, semiconductor grade water, high-quality power, logistics and research ecosystem to nod applications for installing at least two greenfield Semiconductor Fabs and two Display Fabs in the nation. The Cabinet has additionally permitted that the Ministry of Electronics and Information Technology will take needed steps for the modernisation and commercialisation of the Semi-conductor Laboratory (SCL). MeitY will examine the possibility for the Joint Venture of SCL with a commercial fab partner to update the brownfield fab facility. The Scheme for installation of Compound Semiconductors or Silicon Photonics or Sensors (comprising MEMS) Fabs and Semiconductor ATMP or OSAT facilities in India shall provide financial aid of 30% of capital expenditure to supported units. At least 15 such units of Compound Semiconductors and Semiconductor Packaging are likely to be installed with Government support under this scheme. The Design Linked Incentive (DLI) Scheme will extend product design linked incentive of up to 50% of qualified expenditure and product deployment linked incentive of 6% - 4% on net sales for five years. Assistance will be provided to 100 domestic firms of semiconductor design for System on Chips (SoCs), Chipsets, Integrated Circuits (ICs), Systems & IP Cores and semiconductors linked to design and promote the development of not less than 20 such firms which can attain a turnover of over Rs 1500 crore in the next five years. To drive the long-term plans for making a sustainable semiconductor and display ecosystem, a specialised and independent India Semiconductor Mission (ISM) will be installed. The India Semiconductor Mission will be headed by global experts in the semiconductor and display industry. It will serve as the nodal agency for effective and smooth execution of the schemes on Semiconductors and Display ecosystem.                                                                                                                                                                                                                                                                                                                                                                                                                            Image Source