India is gearing up for a significant boost in semiconductor manufacturing, with reports indicating a substantial new package to accelerate progress in the sector. As the initial Rs 76,000-crore incentive scheme nears exhaustion, the government is taking decisive steps to bolster the country’s chipmaking capabilities.
According to a recent report, the forthcoming package is poised to surpass the previous one in scale and scope. Expected to be a top priority for the new government, this initiative aims to invigorate India’s semiconductor ecosystem, which has seen heightened interest from global players.
The success of the December 2021 incentive programme has laid the groundwork for this ambitious move, especially in light of competing nations’ aggressive strategies. Countries like the US and China have already unveiled substantial packages to incentivise semiconductor investments, prompting India to reinforce its commitment to the sector.
Under the existing scheme, the government offers fiscal support of up to 50% of project costs to eligible semiconductor fabricators, a provision that has seen overwhelming demand. With recent approvals for multi-billion-dollar projects from industry giants like Tata Electronics and CG Power, India’s semiconductor ambitions are gaining momentum.
New proposals, including a display fab unit by Japanese Sharp and a significant investment plan from Israel’s Tower Semiconductors, signify the growing interest and confidence in India’s semiconductor landscape. As the nation accelerates its efforts to become a global semiconductor hub, all eyes are on the forthcoming incentives to drive further growth and innovation in the sector.
