Govt's Rs. 76000 crore scheme to make India the semiconductor hub

In a bid to position India as the global hub for Electronic System Design and Manufacturing, the Union Cabinet approves Rs. 76000 to develop semiconductors and display manufacturing in India.

The program will also provide incentive support to companies/consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.

Sanjay Gupta, Managing Director, NXP India, “This will enable India to become an electronics hub and encourage corporates to start manufacturing in India. In the long-term issues like sudden surge in demand of semiconductors will also be addressed. This move will also make the Indian manufacturers globally competitive to attract investment in the areas of core competency and cutting-edge technology.”

In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent India Semiconductor Mission (ISM) will be set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.

Rajeev Khushu, Chairman, IESA, said, “Design-linked incentives will act as a catalyst to the already thriving semiconductor design activity in the country. We will see the design ecosystem going to the next level from both the design and product definition perspectives. The Indian semiconductor Mission is a game-changer like that of ISRO to space technology for the country. It will do the same in the area of ESDM. USD 30 Bn is a great start and I am sure we are going to leapfrog in the field of the semiconductor industry with the cabinet decision.”

With the approval of the program for development of semiconductors and display manufacturing ecosystem in India with an outlay of Rs.76,000 crore (>10 billion USD), Government of India has announced incentives for every part of supply chain including electronic components, sub-assemblies, and finished goods. Incentive support to the tune of Rs.55,392 crore (7.5 billion USD) have been approved under PLI for Larges Scale Electronics Manufacturing, PLI for IT Hardware, SPECS Scheme and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.

In addition, PLI incentives to the quantum of Rs.98,000 crore (USD 13 billion) are approved for allied sectors comprising of ACC battery, auto components, telecom & networking products, solar PV modules and white goods. In total, Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion).

Srinivas Satya, Country President, Applied Materials India, said, “India needed such an audacious goal and an integrated approach to kickstart its semiconductor industry. The current semiconductor shortage has made economies realise the strategic role of these chips in development. India, early on in the game, acknowledged the need to create a semiconductor ecosystem of its own.

This ₹76,000 crore investment for a production linked incentive (PLI) scheme towards semiconductor and display board production is a positive move towards uplifting the industry and economy. This policy announcement is significant that it conceives an India Semiconductor Mission and integrates design-to-semiconductor device – in its overall ESDM enablement program. We are hopeful to see the blossoming of the Indian semiconductor industry with these initiatives.”