The Indian government has announced the commencement of new applications for the establishment of Semiconductor Fabs and Display Fabs in India under the Modified Semicon India Programme from June 01, 2023. This initiative aims to develop a robust semiconductor and display manufacturing ecosystem within the country. The India Semiconductor Mission, the designated nodal agency responsible for implementing the program, will oversee the application process.
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Fiscal Incentives for Semiconductor Fabs and Display Fabs
Companies, consortia, and joint ventures interested in setting up Semiconductor Fabs in India, regardless of their node (including mature nodes), will be eligible for a fiscal incentive equal to 50 percent of the project cost. Similarly, a fiscal incentive of 50 percent of the project cost will be available for the establishment of Display Fabs utilizing specified technologies in India. These incentives are intended to encourage investment and promote growth in the semiconductor and display manufacturing sectors within the country.
Application Window and Modified Schemes
The application window for the "Modified Scheme for setting up of Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor ATMP/OSAT facilities in India" will remain open until December 2024.
This extended timeframe allows interested parties ample opportunity to prepare and submit their proposals. Furthermore, the application window for the Design Linked Incentive Scheme, a part of the Modified Semicon India Programme, will also remain open until December 2024.
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Flexibility for Previous Applicants
All applicants who previously applied under the earlier schemes for setting up Semiconductor Fabs and Display Fabs are permitted to submit their proposals under the Modified Scheme.
These applicants are encouraged to incorporate suitable modifications in their proposals to align with the new guidelines. This provision allows them to benefit from the incentives provided under the Modified Semicon India Programme and enhance their chances of success.
Progress and Approval
Since the launch of the Semicon India Programme in December 2021, with a budget of Rs 76,000 crore, the Government says significant progress has been made. The Design Linked Incentive Scheme has already received 26 applications, and five of those applications have been granted approval.
The government's commitment to fostering the growth of the semiconductor and display manufacturing ecosystem is evident through the ongoing implementation of these schemes.
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Conclusion
The Indian government's decision to invite new applications for Semiconductor Fabs and Display Fabs marks a crucial step towards establishing a robust semiconductor and display manufacturing ecosystem in the country.
