The Union Cabinet on Wednesday approved a ₹76,000 crore scheme to boost semiconductor and display manufacturing in the country, taking the total amount of incentives announced for the electronics sector to ₹2.30 lakh crore, a government statement said.
The comprehensive programme for the “development of sustainable semiconductor and display ecosystem in the country” was aimed at making India a global hub of electronic system design and manufacturing, the statement noted.
“The programme will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design,” the government stated.
The scheme would provide fiscal support of up to 50% of the project cost for setting up semiconductor and display fabrication units. In addition, the Centre would work with the States to set up high-tech clusters with the necessary infrastructure such as land and semiconductor-grade water, the government clarified.
‘India Semiconductor Mission’
“In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialised and independent ‘India Semiconductor Mission’ will be set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on semiconductors and display ecosystem,” the statement read.
Trusted sources of semiconductors and displays had strategic importance in the current geopolitical scenario and were “key to the security of critical information infrastructure”. “The approved programme will propel innovation and build domestic capacities to ensure the digital sovereignty of India. It will also create highly skilled employment opportunities to harness the demographic dividend of the country,” the statement said.
‘Chips to start-ups’ programme
While announcing the scheme at a press briefing, Electronics and Information Technology Minister Ashwini Vaishnaw said electronics manufacturing in the country had increased to $75 billion over the past seven years and was expected to reach $300 billion in the next six years. The “chips to start-ups” programme would develop 85,000 well-trained engineers, he claimed. Semiconductor designers would be given the opportunity to launch start-ups. The government would bear 50% of the expense under the design-linked incentive scheme. The entire programme would lead to 35,000 high-quality direct jobs and 1 lakh indirect employment.
Information and Broadcasting Minister Anurag Thakur said the decision was expected to attract an investment of ₹1.67 lakh crore and lead to production worth ₹9.50 lakh crore.