Global investors attracted to setup fabs in India, says the Cabinet
The Cabinet has approved the recently modified programme for development of semiconductors and display manufacturing ecosystem in India, providing a uniform fiscal support of 50% of Project Cost across all technology nodes for setting up of Semiconductor Fabs.
“Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall also provide fiscal support of 50% of Capital Expenditure in pari-passu mode for setting up of compound semiconductors, silicon photonics, sensors and Discrete semiconductors fabs and ATMP/OSAT,” the Cabinet said in a release on 21 Sept 2022.
The programme has attracted many global semiconductor players for setting up fabs in India, the Cabinet added.
The modified programme will expedite investments in semiconductor and display manufacturing in India.
The Cabinet expects work on setting up of the first semiconductor facility to commence soon based on its discussions with investors.
An Advisory Committee comprising global experts from industry and academia was constituted to advise India Semiconductor Mission – the nodal agency for the programme for development of semiconductors and display manufacturing ecosystem in India.
These are:
Fiscal support of 50% of Project Cost on pari-passu basis for all technology nodes under Scheme for Setting up of Semiconductor Fabs in India.
Fiscal support of 50% of Project Cost on pari-passu basis under Scheme for Setting up of Display Fabs.
Fiscal support of 50% of Capital Expenditure on pari-passu basis under Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP /OSAT facilities in India. Additionally, target technologies under the Scheme will include Discrete Semiconductor Fabs.
Advisory Committee has unanimously recommended uniform support for all technology nodes of silicon semiconductor fabs / Silicon Photonics / Sensors / Discrete Semiconductor Fabs and ATMP/OSAT, which has been accepted by the Government.
The technology nodes of 45nm and above have high demand which is inter-alia driven by Automotive, Power and Telecom applications. Moreover, this segment constitutes around 50% of the total semiconductor market. fiinews.com
