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Government of India taking steps to encourage domestic manufacturing of semiconductors & promote country’s digital transformation and self-reliance

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Government of India taking steps to encourage domestic manufacturing of semiconductors & promote country’s digital transformation and self-reliance

As per industry estimates, the size of the Indian semiconductor market was about $ 38 Bn in 2023 and is expected to reach $ 109 Bn by 2030. Government has taken various steps to encourage domestic manufacturing of semiconductors in the country are as follows:

Further, Government has been implementing following programs focused on development of electronics manufacturing and components ecosystem:

 

 

 

The Government recognizes the importance of semiconductor technology for the country’s digital transformation and self-reliance in the sector. To foster talent development, several initiatives have been launched in India:

 

This information was given by the Minister of State for Electronic & Information Technology, Shri  Jitin Prasada in a written reply to a question in Lok Sabha today.

  1. Government has approved the Semicon India programme with a total outlay of ₹76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country. The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.
  2. Following four schemes have been introduced under the aforesaid programme:
      1. ‘Modified Scheme for setting up of Semiconductor Fabs in India’ extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fabs in India.
      2. ‘Modified Scheme for setting up of Display Fabs in India’ extends fiscal support of 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.
      3. ‘Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India’ extends a fiscal support of 50% of the Capital Expenditure on pari-passu basis for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab/ Discrete Semiconductor Fab and Semiconductor ATMP / OSAT facilities in India.
      4. ‘Design Linked Incentive (DLI) Scheme’: In addition to the design infrastructure support, the scheme provides “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.
  4. Government has also approved modernisation of Semi-Conductor Laboratory, Mohali as a brownfield Fab.

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