New PLI scheme approved by cabinet to provide 50% of project cost for setting up microchip factories

Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall provide fiscal support of 50 per cent of capital expenditure.

PTIUpdated: Wednesday, September 21, 2022, 08:35 PM IST
article-image
Semiconductors play a critical part in the production of internal combustion engines. They are an integral part of all kinds of sensors and controls in any vehicle. / Representative Image |

The Cabinet on Wednesday approved modifications in the scheme for semiconductors and display manufacturing ecosystem, with uniform fiscal support of 50 per cent of project cost for all technology nodes under the ambitious programme.

Announcing the decision of the Cabinet, Union Minister Anurag Thakur said the modifications will strengthen the semiconductor scheme, thus raising capacities within the country, encouraging investments, and creating employment opportunities.

"Under modified programme, a uniform fiscal support of 50 per cent of project cost shall be provided across all technology nodes for setting up of Semiconductor Fabs," an official release said.

Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall provide fiscal support of 50 per cent of capital expenditure for setting up of compound semiconductors / silicon photonics / sensors / discrete semiconductors fabs.

"The programme has attracted many global semiconductor players for setting up fabs in India. The modified programme, will expedite investments in semiconductor and display manufacturing in India," it added.

On the basis of discussion with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon, the release said.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Rupee hits another record low after breaching the 82 mark against US dollar

Rupee hits another record low after breaching the 82 mark against US dollar

Infosys faces legal action in US for alleged discrimination on basis of gender, race

Infosys faces legal action in US for alleged discrimination on basis of gender, race

In first attempted privatisation of a public sector bank, LIC, government to sell 60% stake in IDBI

In first attempted privatisation of a public sector bank, LIC, government to sell 60% stake in IDBI

RBI releases concept note for digital Rupee e₹, to counter volatile cryptocurrencies in India

RBI releases concept note for digital Rupee e₹, to counter volatile cryptocurrencies in India

Mukesh Ambani reportedly plans to set up family office in Singapore, benefit from low taxes and more...

Mukesh Ambani reportedly plans to set up family office in Singapore, benefit from low taxes and more...