Union Cabinet Likely To Consider Rs 76,000 Crore Scheme For Semiconductor Manufacturing Today: Report
The Union Cabinet is likely to consider approving a scheme for providing incentives worth Rs 76,000 crore over the next six years to boost the domestic manufacturing of semiconductor chips and other electronic items on Wednesday (15 December).
"The scheme will include provision for 25 percent incentives on capital expenditure for establishing unit of Compound Semiconductor Wafer Fabrication (Fab), assembly, testing, and packaging facility," a person aware of the development was quoted in a CNBC Awaaz report as saying, reports Moneycontrol.
The scheme also includes incentives for start-ups to design and develop semiconductors.
According to a report by the Economic Times, the incentives are likely to support setting up of over 20 semiconductor design, components manufacturing and display fabrication units in the country.
The semiconductors are used to make wide range of products ranging from smartphones to automobiles.
"Through various PLI (production linked incentive) schemes, the Centre has tried to broaden the scope of manufacturing and export from India while the semiconductor policy will help deepen India's manufacturing base," a senior government official was quoted in a Economic Times report as saying.
As per the report, the government's target includes 10 units each for designing and manufacturing components as well as one to two units for display fabrication.
The scheme is expected to go to the Cabinet approval today, following which the Ministry of Electronics and Information Technology (MeitY) would work out on the details and invite applications.
"...(after the Cabinet approval), the final contours of the policy will be drawn later and advertised, seeking interest from companies to invest," another official was quoted in the report as saying.
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