News Brief
India Mulls Revised Rs 10,000 Crore Incentive Scheme For Local Chip Component Manufacturing
Semiconductor chips (Representative Image)
In a strategic move to fortify its position in the global electronics and semiconductor industry, India is set to introduce a revamped incentive scheme amounting to Rs 10,000 crore.
The initiative aims to foster the establishment of electronic and semiconductor component plants within the country, creating a conducive environment for mega chip-packaging units led by global entities like Micron, Tata Group, and Kaynes Corp.
As reported by Livemint, the new incentive plan is a revised version of the existing Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
Expected to launch early next year, the revamped scheme will transition from the current reimbursement approach to a 'pari-passu' method for fund allocation.
Under this method, funds will be released to the firms proportionate to their investment or upon successful completion of specific milestones.
Recently, the industry has witnessed growing interest with major players such as Micron, Tata Electronics, and Kaynes Corp announcing their plans for assembly, testing, marking, and packaging (ATMP) plants.
The current SPECS scheme provides reimbursement of up to 25 per cent of the total capital expenditure post-project completion.
However, the revised incentive plan will include provisions to stimulate increased research and development (R&D) in the sector.
Meanwhile, the government has advised companies to defer the submission of their plans under the current scheme, awaiting the unveiling of the revised version to align with the evolving landscape of India's burgeoning electronics and semiconductor industry.
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