Prime Minister Narendra Modi-chaired Union Cabinet approved a production linked incentive (PLI) scheme for semiconductor and display board production in the country, said Anurag Thakur, Information and Broadcasting (I&B) Minister today during the Cabinet meeting. The PLI scheme involves an outlay of Rs 76,000 crore in semiconductor production over the next 5-6 years. As part of the scheme, the incentives include every part of the supply chain ranging from electronic components, sub-assemblies, to finished goods.
Prime Minister Narendra Modi-chaired Union Cabinet approved a production linked incentive (PLI) scheme for semiconductor and display board production in the country, said Anurag Thakur, Information and Broadcasting (I&B) Minister today during the Cabinet meeting. The PLI scheme involves an outlay of Rs 76,000 crore in semiconductor production over the next 5-6 years. As part of the scheme, the incentives include every part of the supply chain ranging from electronic components, sub-assemblies, to finished goods.
The incentive support of around Rs 55,392 crore is approved under PLI for the larges scale electronics manufacturing, PLI for IT hardware, SPECS scheme, and modified electronics manufacturing clusters (EMC 2.0) scheme, according to the statement.
Additionally, PLI incentives of around Rs 98,000 crore are approved for allied sectors comprising of ACC battery, auto components, telecom & networking products, solar PV modules, and white goods. Overall, the government has committed monetary support of Rs. 2,30,000 crore to position India as a global hub for electronics manufacturing with semiconductors as the foundation, according to the Cabinet statement today.
Telecom and IT Minister Ashwini Vaishnaw said the decision will help design, fabrication, packing, and testing of the microchips and develop a complete ecosystem. The scheme aims to provide incentives to companies engaged in silicon semiconductor fabs, display fabs, semiconductor packaging, semiconductor design, among others.
India - the world's second-biggest smartphone maker, has announced the plan at a time when automakers and tech companies are struggling due to a global semiconductor shortage.
Tata Group is also venturing into the business and is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, according to news agency Reuters.
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