Under the Modified Programme, a financial incentive of 50% of the project cost will be provided for setting up of semiconductor/ display fabs in India
For the development of the semiconductors and display manufacturing ecosystem in India, the central government has decided to invite applications for setting up semiconductor and display Fabs in India. The Ministry of Electronics and Information Technology (MeitY) announced that applications for setting up semiconductor and display fabs as per Modified Semicon India Programme are invited today. India Semiconductor Mission, which is the designated nodal agency entrusted with the responsibility of implementing the Modified Semicon India Programme, will receive these applications. All applicants who had applied under the old, separate schemes for setting up of semiconductor fabs and display fabs are allowed to submit applications under now modified schemes after incorporating suitable modifications in their proposals.
As per the Modified Programme, a fiscal incentive of 50% of the project cost will be provided to companies/consortia/ joint ventures for setting up semiconductor fabs in India of any node (including mature nodes). An equal incentive is available for setting up of Display Fabs of specified technologies in the country.
The official release said that the application window of the ‘Modified Scheme for setting up of Compound Semiconductors/ Silicon Photonics/ Sensors Fab/ Discrete Semiconductors Fab and Semiconductor ATMP/ OSAT facilities in India’ is open till December 2024. Notably, the application window of the Design Linked Incentive Scheme is also open till December 2024. As per the government data, 26 applications have been received under DLI Scheme and five applications have been granted approval to date.
It is noteworthy that the centre launched the Semicon India Programme in December 2021 with an outlay of INR 76,000 crore for the development of the semiconductors and display manufacturing ecosystem in India.