CABINET APPROVED ₹76,000 CRORE SCHEME TO BOOST SEMICONDUCTOR MANUFACTURING
Highlights
- This scheme was approved in order to position India as a global hub for hi-tech production, as well as to attract large chip makers.
- It would also strengthen India’s ambitions to be self-reliant in electronics manufacturing and bring huge investments.
- This move will generate 35,000 specialized jobs and indirect employment for one lakh people.
Significance of the semiconductor scheme
- This move is significant because, in the present geopolitical scenario, trusted sources of semiconductors and displays have strategic importance.
- These are key to the security of critical information infrastructure.
- Furthermore, this scheme has been approved at a time when the world is witnessing a severe crunch of semiconductors, which is an important component of cars and electronic devices.
- Supply of semiconductors have disrupted due to pandemic.
Incentives under Semiconductor Scheme
- Under the scheme, government has lined up incentives for companies engaged in silicon semiconductor fabs, compound semiconductors, display fabs, sensors fabs, silicon photonics, semiconductor packaging and semiconductor design.
- With the launch of this scheme, government expects investments of about Rs1.7 lakh crore and 1.35 lakh jobs in upcoming four years.
Fabs and Units under the scheme
- Under the semiconductor scheme, government is likely to establish at least two greenfield semiconductor fabs, two display fabs and 15 units of Compound Semiconductors & Semiconductor Packaging.
Design Linked Incentive (DLI) Scheme
- Under the Design Linked Incentive (DLI) scheme, government will provide support to 100 domestic companies of semiconductor, systems & IP cores, design for Integrated Circuits (ICs), System on Chips (SoCs), Chipsets, and semiconductor linked design.
- This scheme will offer an incentive of up to 50 percent of eligible expenditure.
India Semiconductor Mission
- Government will also set up an independent ‘India Semiconductor Mission (ISM)’, for driving the long-term strategies to develop a sustainable semiconductors and display ecosystem in India.