The semiconductor shortage across the world is real. Manufacturers are having to delay launches, halt production, and do all kinds of workarounds to deal with the shortage. It’s not just tech companies, but automakers, appliance makers, and more – almost everyone is facing the brunt of semiconductor shortage. To cater to this, the Indian government is planning to provide incentives worth up to Rs 76,000 crores for semiconductor manufacturers towards setting up over 20 semiconductor design, components, manufacturing, and display fabrication units over the next six years, a report in The Economic Times has said.
The report quotes a senior government official as saying that the Centre has tried to broaden the scope of manufacturing and export from India while the semiconductor policy will help deepen India’s manufacturing base. This, the official told ET will be done through various Production Linked Incentive (PLI) schemes. ET cited government officials to hint that the government’s target includes one or two fab units for displays, and 10 units each for designing and manufacturing components.
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The scheme, according to the report, is likely to go to the Cabinet next week for approval. After that, the Ministry of Electronics and Information Technology (MeitY) will work on the details and invite applications.
The world has been struggling with a shortage of semiconductors since last year. This has affected the production and indirectly, the markets for a slew of industries like gadgets, automakers, appliances, and more. The ET report quoted experts as saying that if this new scheme can lure some big foundries to the country, it will go a long way in making India self-reliant and invite more foreign investment in the long term.
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