New Delhi: The Program for Development of the Semiconductor and Display Manufacturing Ecosystem in India has been approved by the Cabinet, which is presided over by Prime Minister Shri Narendra Modi. The changes include financial support of 50% of project costs on a pari-passu basis for all technology nodes under the Scheme for Establishing Semiconductor Fabs in India, financial support of 50% of project costs on a pari-passu basis under the Scheme for Establishing Display Fabs, and financial support of 50% of capital expenditure on a pari-passu basis under the Scheme for Establishing Compound Semiconductors/ Silicon Photonics/ Sensors Fab and Semiconductor ATMP Additionally, Discrete Semiconductor Fabs will be one of the Scheme’s target technologies.
In accordance with the updated programme, a uniform financial support of 50% of the project cost will be given to the establishment of semiconductor factories across all technology nodes. The updated programme will additionally offer fiscal support of 50% of Capital Expenditure in pari-passu mode for setting up of compound semiconductors, silicon photonics, sensors, discrete semiconductor fabs, and ATMP/OSAT due to the specialised nature of compound semiconductors and advanced packaging.
The scheme has drawn numerous international semiconductor companies to establish fabs in India. The amended initiative will hasten investments in India’s semiconductor and display industry. According to conversations with potential investors, it is anticipated that construction on the first semiconductor factory will start soon.
To provide guidance to the India Semiconductor Mission, the lead organization for the programme to expand the Indian semiconductor and display manufacturing ecosystem, a committee of international experts from business and academics was established. The Government has approved the unanimous recommendation of the Advisory Committee to provide standard support for all technology nodes of silicon semiconductor fabs, silicon photonics, sensors, discrete semiconductor fabs, and ATMP/OSAT. Demand for technology nodes of 45 nm and higher is significant, driven in part by the automotive, power, and telecom industries. Additionally, this market segment accounts for almost 50% of the entire semiconductor market.