The Union Cabinet on Wednesday approved a ₹76,000 crore incentive plan to woo semiconductor fabricators and display manufacturers, doubling down on the Centre’s push to make India a global electronics production hub. With this, the total amount of production linked incentive (PLI) announced for the electronics sector increase to Rs 2.30 lakh crore.
About the scheme:
- This scheme was approved in order to position India as a global hub for hi-tech production, as well as to attract large chip makers. It would also strengthen India’s ambitions to be self-reliant in electronics manufacturing and bring huge investments.
- The government will also set up an independent ‘India Semiconductor Mission (ISM)’, for driving the long-term strategies to develop a sustainable semiconductor and display ecosystem in India.
Under Semiconductor Scheme:
Under the scheme, the government has lined up incentives for companies engaged in silicon semiconductor fabs, compound semiconductors, display fabs, sensors fabs, silicon photonics, and semiconductor packaging and semiconductor design. With the semiconductor incentive scheme in place, the government expects investments of around Rs 1.7 lakh crore and 1.35 lakh jobs in the next four years.