The Union Cabinet approved the modifications in the scheme for the semiconductors and display manufacturing ecosystem, with uniform fiscal support of 50 percent of the project cost for all technology nodes and the setting up of display fabs.
Union Minister, Anurag Thakur said “due to supply-chain disruption, many countries have announced financial incentives to companies for semiconductor manufacturing. Therefore, the government has decided to give 50 percent incentives for semiconductor fabs.”
Anurag further informed that the Union Cabinet on Wednesday approved 50 percent financial incentives for setting up the semiconductor fabrication plants across various sizes of transistors as well as for compound semiconductors, packaging, and other chip facilities. Earlier, the government had planned 30-50 percent incentives for different categories. However, the incentive has now been retained at 50 percent for all categories. Earlier, the incentive was for 65 nm size, but now this restriction has been removed and all sizes have been covered.
He added further that the government has tweaked the existing scheme to attract companies. The modifications will strengthen the semi-conductor scheme and help raise capacities across the country. Last December, the Centre announced ₹ 76,000 crores for the development of the semiconductors and display manufacturing ecosystem.
