Centre Announces 50% Incentives For Semiconductor Fabs Across The Technology Nodes

Central Government has introduced modifications in “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India”. Now, the programme will offer 50 per cent incentives for semiconductor fabs across the technology nodes as well as for compound semiconductors, packaging and other semiconductor facilities.

Under the freshly modified programme, a uniform fiscal support of 50 per cent of Project Cost will be provided across all technology nodes for setting up of semiconductor fabs. Additionally, fiscal support of 50 per cent of Project Cost will be provided under Scheme for Setting up of Display Fabs.

"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", said a government statement.

An Advisory Committee comprising global experts from industry and academia was constituted to advise India Semiconductor Mission - the nodal agency for the Programme for development of semiconductors and display manufacturing ecosystem in India. 

This 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. 

Earlier last week, the Indian semiconductor space received the big news of USD 19.5 billion joint investment from Vedanta and Foxconn for a semiconductor and display manufacturing facility in Gujarat.