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Chip, display units scheme: From January 1, applications invited

Earlier this month, the Union Cabinet had approved a Rs 76,000 crore plan for semiconductor and display manufacturing ecosystem in the country. The scheme is expected to provide a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.

By: ENS Economic Bureau | New Delhi |
December 31, 2021 1:37:42 am
The new scheme is expected to provide impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.

The Ministry of Electronics and Information Technology (MeitY) will start accepting applications for setting up of semiconductor fabrications units, display fabrication units, compound semiconductors, silicon photonics as well as for design linked incentive scheme from January 1, IT minister Ashwini Vaishnaw said.

“For the smaller scheme, which is compound semiconductor, semiconductor assembly, testing, marking and packaging, we will start concurrent evaluations. There, there is no limit on the number of units which can be set up. As many units qualify, we will keep approving for setting up. The bigger ones, which is silicon and display, we will receive the application till February 15 and then we will start evaluations,” Vaishnaw said.

The government has also selected a list of 60 institutions from where it plans to train the 85,000 engineers, and will soon finalise the details of the course which these engineers will be trained on, the minister said.

Earlier this month, the Union Cabinet had approved a Rs 76,000 crore plan for semiconductor and display manufacturing ecosystem in the country. The scheme is expected to provide a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.

The move assumes significance at a time when there is a global shortage of semiconductor products and large chipmakers including Intel, TSMC, Texas Instruments, etc are looking to add capacity. In India, the Tata Group has expressed plans to foray into semiconductor manufacturing.

The new scheme is expected to provide impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations. Under the new scheme, the government has lined up incentive support for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging and semiconductor design.

As a part of the scheme, for setting up of silicon complementary metal oxide semiconductor, fabrication unit which manufacture technology node of 28 nanometer (nm) or lower will get up to 50 per cent of the project cost as incentive, while for above 28 nm but up to 45 nm, the government will provide 40 per cent of the unit cost.

Apart from the fiscal support, the government will also give preference in government purchases for products from the semiconductor fabrication units set up in India, the ministry said in a statement.

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