The Union Cabinet on Wednesday cleared the Rs 76,000-crore incentive scheme for semiconductors, making a way to make India a hub for electronics. Under this initiative, the Centre plans to set up over 20 semiconductor design, components manufacturing, and display fabrication (fab) units in India over the six years. The move came at a time when global semiconductor shortage has severely affected various industries across the world.
The Narendra Modi-led Union cabinet had decided to incentivise semiconductor manufacturing in three ways — firstly, there will be 25 per cent incentives on capital expenditure for establishing unit of compound semiconductor wafer fabrication (Fab), assembly, testing, and packaging facility, sources told News18 earlier. Secondly, the scheme would also include incentives for startups towards the design development of semiconductors. Thirdly, the proposed scheme envisioned investments of Rs. 1.7 lakh crore by the industry.
The Centre also had plans to set up two fab units for semiconductor displays, and 10 units each for designing and manufacturing components. This PLI scheme will help to deepen India’s manufacturing base.
Once the Cabinet approves the scheme, the Ministry of Electronics and Information Technology (MeitY) will work out the details. With this mega incentive, the government is planning to attract the top semiconductor manufacturers such as Mediatek, Intel, Qualcom, Samsung and Texas Instruments.
This much-needed incentive by the central government can help India to become an electronics hub, especially amid ongoing global semiconductor shortage crisis.
Semiconductors are the key components used in manufacturing various kinds of electronic devices including smartphones, laptops, cars and other appliances and vehicles. The shortage has affected smartphones, personal computers, game consoles, automobiles, and medical devices.
Read all the Latest News, Breaking News and Coronavirus News here.
For all the latest business News Click Here
