Cabinet approves Rs 76,000-crore incentive scheme for semiconductors manufacturing in India

New Delhi, December 15: The Cabinet cleared the Rs 76,000-cr incentive scheme for semiconductors today. Under this scheme, India will set up more than 20 semiconductor design, components manufacturing and display fabrication (fab) units over next 6 years.

 

This is part of Modi government’s bid to make India a hub for electronics. The ministry of electronics & IT (MeitY) will now work out details and invite applications. The new semiconductor policy will help deepen India’s manufacturing base, a senior government official had told ET prior to approval. As part of the scheme, apart from big companies, the govt will also seek to incentivise start-ups to design and make semiconductors. In all, investments worth Rs 1.7 lakh crore are expected to materialise.

 

 

The government’s target as of now, includes, 1-2 fab units for displays, and 10 units each for designing and producing components. It will have huge transformative power and this entire programme will generate 35,000 high-quality jobs and indirect employment for 1 lakh people, said the government.

 

Global industry is currently facing an acute shortage of semiconductor chips, which has caused production become inconsistent and prices to rise. Semiconductors are used for making several products right from cars to phones. In recent times, their supply has been severely disrupted, owing to many reasons, causing a crisis in a number of industries like automobiles and gadgets.

 

 

Many other items used daily, like TVs, laptops and washing machines need semiconductors.