The new scheme aims at attracting large investments for setting up semiconductor in the country (File)
The Government offers financial support up to 50% of the project cost and support the semiconductor fabs set up in India through purchase preference in procurement of electronic products.
After announcing sops worth, 760 billion rupees ($10 billion) spread over six years to boost local chip production, the Ministry of Electronics and Information Technology unveiled the scheme to attract large investments for setting up semiconductor wafer fabrication facilities within the country to strengthen the electronics manufacturing ecosystem.
The financial support offered includes up to 50% of the project cost. While the minimum tenure of support is six years, it can be extended based on the approval of the Minister of Electronics and Information Technology.
The Government will support the semiconductor fabs set up in India through purchase preference in procurement of electronic products under the Public Procurement (Preference to Make in India) Order 2017. Up to 2.5% of the outlay of the scheme shall be earmarked for meeting the research and development (R&D), skill development and training requirements for developing the semiconductor ecosystem in India.
Wireless communications is expected to drive India's semiconductor market, consumer electronics and automotive electronics with 24%, 23% and 20% of the market share, respectively and is estimated to reach ₹4.73 lakh crore by 2026.
IT Minister Ashwini Vaishnaw said, "In next 2-3 years time frame, we see at least 10-12 semiconductors going into production, we see display fab going into production or may be finalizing completion. At least 50-60 designing companies would have started designing the products in the next 2-3 years."
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