Union Cabinet Approves Changes In Semiconductor Manufacturing PLI Scheme


Semiconductor PLI: The government on Wednesday changed the Rs 76,000 crore incentive scheme for semiconductor and display manufacturing units. Under this, an incentive of 50 percent of the project cost has been offered for all categories of factories. These amendments will attract global companies like Intel to set up manufacturing units in India and reduce dependence on imports.

The Production Linked Incentive or PLI scheme, announced in December last year, offered different financial assistance to different categories for the development of the semiconductor and display manufacturing ecosystem in India. This assistance ranged between 30-50 percent. The government has made it uniform. The government will provide 50 per cent incentive of project cost across all technology nodes for setting up not only state-of-the-art computing chips but also semiconductor fabs to be used in sectors such as power, telecommunications and automotive.

will get 50 percent incentive

Minister of State for Information Technology Rajiv Chandrashekhar said that the total outlay for the package will remain the same, but with 50 per cent incentive, the semiconductor policy will become “highly competitive”. This will give a huge boost to the silicon and compound fabs, packaging units, display fabs and the design and innovation ecosystem. He said global companies are looking at India as a viable investment destination for semiconductors.

Interest will increase, new offers will come

India is establishing itself as the most lucrative destination in Asia for electronics and semiconductors, and the government is confident of an investment of around Rs 2 lakh crore over the next two years. “We are confident that this decision will increase the interest of companies and new proposals will come before us,” Chandrashekhar told reporters.

‘Fab and packaging right here’

Earlier on Wednesday the Prime Minister Narendra Modi The Cabinet chaired by PM Narendra Modi has approved financial support of 50 percent of the project cost for setting up of Semiconductor and Display Fab as well as other categories like Compound Semiconductor Plant. Chandrasekhar said, “We want the entire integrated ecosystem to be present here, from design to manufacturing and packaging and testing.

The risk was that we would have fab and then the packaging would be elsewhere. We don’t want this to happen… We want the packaging to be here if the fabs are here. The government will consider this issue.

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