Cabinet approves Rs 76,000-cr PLI scheme for semiconductor manufacturing

The programme will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations

Aimed at making India a global electronics production hub, the Centre on Wednesday approved a Rs 76,000-crore policy boost to woo semiconductor fabrications and display manufacturers.

The Union Cabinet approved the scheme, which is spread over six years. The scheme will help set up semiconductor fabs and display fabs in India, extending financial support of up to 50 per cent of the project cost to eligible applicants, IT and Telecom Minister Ashwini Vaishnaw told media after the meeting.

"The Scheme for setting up of compound semiconductors/silicon photonics/sensors fabs and Semiconductor ATMP/OSAT facilities in India shall extend fiscal support of 30 per cent of capital expenditure, to approved units," an official release from the Ministry of Electronics and Information Technology stated.

At least 15 such units of compound semiconductors and semiconductor packaging are expected to be established with government support under this scheme.

A Design Linked Incentive (DLI) scheme will offer an incentive of up to 50 per cent of eligible expenditure and a product deployment linked incentive of 6-4 per cent on net sales for five years.

"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 statement said.

Giving details of the scheme, the minister said it is expected to usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design. It will strengthen India's technological prowess in these areas of strategic importance and economic self-reliance, he said.

With a view to driving the long-term strategies for developing a sustainable semiconductor and display ecosystem, a specialised and independent 'India Semiconductor Mission (ISM)' will also be established.

In all, the government has committed support of Rs 2,30,000 crore to position India as a global hub for electronics manufacturing, with semiconductors as the foundational building block.

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