The government has invited new applications for setting up of semiconductor fabs and display fabs in India from June 1, 2023, under the Modified Semicon India Programme. The applications will be received by India Semiconductor Mission, the designated nodal agency entrusted with the responsibility of implementing the Modified Semicon India Programme for the development of semiconductors and display manufacturing ecosystem in India.
Under the modified programme, a fiscal incentive of 50 per cent of the project cost is available to companies/consortia/joint ventures for setting up semiconductor fabs in India of any node (including mature nodes). Similarly, a fiscal incentive of 50 per cent of the project cost is available for setting up display fabs of specified technologies in India.
The application window for “Modified Scheme for setting up Compound Semiconductors / Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor ATMP/OSAT facilities in India” is open until December 2024. The application window of the design-linked incentive (DLI) scheme is also open till December 2024. To date, 26 applications have been received under the DLI scheme and five applications have been granted approval.
The government launched the Semicon India Programme in December 2021 with an outlay of Rs 760 billion for the development of the semiconductors and display manufacturing ecosystem in India. All applicants who had applied under the scheme for setting up of semiconductor fabs and scheme for setting up of display fab (earlier schemes) are allowed to submit applications under the modified scheme for setting up of semiconductor fabs and modified scheme for setting up of display fabs after incorporating suitable modification in their proposals.