Cabinet approves modifications in Programme for Development of Semiconductors and Display Manufacturing Ecosystem
New Delhi, September 22, 2022
The Cabinet on Wednesday approved modifications in the Programme for the Development of Semiconductors and Display Manufacturing Ecosystem including 50% incentives for semiconductor fabs across the technology nodes as well as for compound semiconductors, packaging and other facilities.
Fiscal support of 50% of project cost on a pari-passu basis for all technology nodes will be available under Scheme for Setting up Semiconductor Fabs in India.
Fiscal support of 50% of project cost on a pari-passu basis will be available under the scheme for setting up Display Fabs.
Fiscal support of 50% of capital expenditure on a pari-passu basis will be available under the Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP /OSAT facilities in India. Additionally, target technologies under the scheme will include Discrete Semiconductor Fabs.
Under the modified programme, uniform fiscal support of 50% of Project Costs will be provided across all technology nodes for the setting up of Semiconductor Fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme will also provide financial support of 50% of Capital Expenditure in the pari-passu mode for setting up of compound semiconductors/silicon photonics / sensors / Discrete semiconductors fabs and ATMP/OSAT.
The programme has attracted many global semiconductor players for setting up fabs in India. The modified programme will expedite investments in semiconductor and display manufacturing in India. Based on discussions with potential investors, it is expected that work on setting up the first semiconductor facility will commence soon.
An Advisory Committee comprising global experts from industry and academia was constituted to advise India Semiconductor Mission - the nodal agency for the Programme.
The Advisory Committee has unanimously recommended uniform support for all technology nodes of silicon semiconductor fabs / Silicon Photonics / Sensors / Discrete Semiconductor Fabs and ATMP/OSAT, which has been accepted by the Government.
The technology nodes of 45nm and above have high demand which is inter-alia driven by Automotive, Power and Telecom applications. Moreover, this segment constitutes around 50% of the total semiconductor market.