Government Approves 50% Incentives for Chip Fabs Across All Tech Nodes
Article By : PIB India
India's Central Cabinet has approved modifications in the program for development of semiconductors and display manufacturing ecosystem in India.
India’s Central Cabinet, chaired by Prime Minister Narendra Modi, has approved modifications in the program for development of semiconductors and display manufacturing ecosystem in India. Among the modifications are a fiscal support of 50% of project cost on pari-passu basis for all technology nodes under the scheme for setting up of semiconductor fabs in India; fiscal support of 50% of project cost on pari-passu basis under the scheme for setting up of display fabs; and fiscal support of 50% of capital expenditure on pari-passu basis under the scheme for setting up of compound semiconductors, silicon photonics, sensors fab, and semiconductor ATMP/OSAT facilities in India. Target technologies under the Scheme will also include discrete semiconductor fabs.
Under modified program, a uniform fiscal support of 50% of project cost shall be provided across all technology nodes for setting up of semiconductor fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified program shall also provide fiscal support of 50% of capital expenditure in pari-passu mode for setting up of compound semiconductors, silicon photonics, sensors, discrete semiconductors fabs, and ATMP/OSAT.
The program has attracted many global semiconductor players for setting up fabs in India. The modified program will expedite investments in semiconductor and display manufacturing in India. On the basis of discussion with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon.
An Advisory Committee comprising global experts from industry and academia was constituted to advise India Semiconductor Mission—the nodal agency for the program for development of semiconductors and display manufacturing ecosystem in India. The Advisory Committee has unanimously recommended uniform support for all technology nodes, which has been accepted by the Government. The 45nm and above technology nodes have high demand, which is driven by automotive, power, and telecom applications. This segment constitutes around 50% of the total semiconductor market.
