The Union Cabinet on Wednesday approved modifications in the scheme for development of the semiconductor and display manufacturing ecosystem, with a uniform fiscal support of 50% project cost for all technology nodes for setting up of semiconductor fabrication units.
As per the government, the work on setting up of the first semiconductor facility is expected to commence soon.
“Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme will 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 [Assembly Testing Marking and Packaging/ Outsourced Assembly and Test],” the government said in a statement.
The government added that the programme had attracted many global semiconductor players for setting up fabs in India and the modified programme would expedite investments in semiconductor and display manufacturing in India.
“On the basis of discussions with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon,” it added.
It further said that the Advisory Committee, constituted to advise India Semiconductor Mission - the nodal agency for the programme, had unanimously recommended uniform support for all technology nodes of silicon semiconductor fabs / Silicon Photonics / Sensors / Discrete Semiconductor Fabs and ATMP/OSAT, and that it had been accepted by the government.
The technology nodes of 45nm and above have high demand, driven primarily by automotive, power and telecom applications. Moreover, this segment constitutes about 50% of the total semiconductor market, it added.
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