Govt Plans To Approve 76,000 Crore Scheme To Push Semiconductor Manufacturing In India

New Delhi: In a bid to push semiconductors manufacturing in India, the union government is expected to approve a multi-billion-dollar capital support as well as Production Linked Incentive (PLI).

According to media reports, in this regard, the cabinet is expected to hold meeting on Wednesday at 1 PM.

Notably, the move comes at a time when the industry in the world is suffering due to shortage of semiconductor which is a key component in all types of electronic devices.

The reports further said that the government is likely to provide incentive worth Rs 76,000 crore for semiconductor production over the next six years.

According to a report by CNBC-TV18, the scheme will include provision for 25 per cent incentives on capital expenditure for establishing unit of compound semiconductor wafer fabrication (Fab), assembly, testing, and packaging facility. The scheme will also include incentives for startups towards the design development of semiconductors. The proposed scheme envisioned investments of Rs. 1.7 lakh crore by the industry.

Reportedly, the government also plans to set up over 20 semiconductor design, components manufacturing, and display fabrication (fab) units in India over the six years.

If the scheme is approved by the cabinet in said meeting, then the Ministry of Electronics and Information Technology (MeitY) will work out the details.

With this scheme, the government is mulling to attract the top semiconductor manufacturers such as Mediatek, Intel, Qualcom, Samsung and Texas Instruments.

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