Modified semiconductor incentive applications from Thursday: IT Ministry

The new scheme, unveiled last year, allows a wider scope of fiscal incentives to chipmakers and display manufacturers.

May 31, 2023 03:47 pm | Updated 08:45 pm IST - NEW DELHI

A microchip integrated on a motherboard. The Centre is offering tax breaks to chipmakers and displays manufacturers in India.

A microchip integrated on a motherboard. The Centre is offering tax breaks to chipmakers and displays manufacturers in India. | Photo Credit: Getty Images/iStockphoto

The Union government will invite applications for setting up semiconductor and display fabrication units in India from Thursday onwards, the Ministry of Electronics and Information Technology said in a press release on May 31. “The applications will be received by India Semiconductor Mission, the designated nodal agency entrusted with the responsibility of implementing the Modified Semicon India Programme for development of semiconductors and display manufacturing ecosystem in India,” the Ministry said.

Under the Modified Semicon India Programme, fiscal incentives amounting to 50% of the project cost are available to companies, consortia, and joint ventures for setting up fabrication units, or fabs, in India. A similar incentive has been extended to fabs making displays for smartphones, TVs and other such devices.

The Centre will receive applications until December 2024. “26 applications have been received under [Design Linked Incentive] Scheme and five applications have been granted approval,” the IT Ministry said.

The Semicon India Programme was launched in December 2021 amid government efforts to boost domestic electronics manufacturing. ₹76,000 crore has been provided as an outlay for the scheme, and the government said that earlier applicants were free to apply again under the modified scheme.

The modified scheme, unveiled late last year, allowed a wider range of fiscal incentives for more “nodes” (specific manufacturing processes that might be spread out over a chip’s production cycle).

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