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India’s Semiconductor Mission announced

The Union Cabinet on December 15, approved a Rs 76,000 crore production-linked incentive scheme for semiconductor and display manufacturing in India.

Highlights

  • Cabinet has approved a Rs 76,000 crore PLI scheme for semiconductors
  • India Semiconductor Mission will be led by global experts
  • PLI scheme will provide monetary support of up to 50% for setting up units

In an attempt to push Semiconductor manufacturing within the country, the Union Cabinet, on December 15, cleared a Rs 76,000 crore production-linked incentive scheme (PLI) for semiconductor and display manufacturers to make the country an electronic system design and manufacturing global hub.

The government proposes to provide incentives worth Rs 76,000 crore for semiconductor production over the next six years. “The programme will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design”, a statement issued by the government stated.

The PLI scheme will provide monetary support of up to 50% of the project cost for setting up semiconductor and display fabrication units in the country. Moreover, the government noted that the Centre will work with the States to set up high-tech clusters with the necessary infrastructure such as land and semiconductor-grade water.

Read More: Snapdragon 8 Gen 1 4nm SoC announced

‘India Semiconductor Mission’

“In order to drive the long-term strategies for developing sustainable semiconductors and display ecosystem, a specialised and independent ‘India Semiconductor Mission’ will be set up. The India Semiconductor Mission will be led by global experts in the semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on semiconductors and display ecosystem”, the government further stated.

“The approved programme will propel innovation and build domestic capacities to ensure the digital sovereignty of India. It will also create highly skilled employment opportunities to harness the demographic dividend of the country”, it added.

While announcing the PLI scheme at a press briefing, Electronics and Information Technology Minister Ashwini Vaishnaw further said that the electronics manufacturing in India had increased to $75 billion over the past seven years and was expected to reach $300 billion in the next six years. The “chips to start-ups” programme would further develop 85,000 well-trained engineers, he claimed.

The policy comes amid the global chip shortage supply that is not affecting one but all the smartphone and automobile manufacturers worldwide. The chip shortage has resulted in decreased manufacturing and supply of smartphones and cars in the market.

To recall what is a PLI scheme, the government back in March 2020, announced a scheme that aimed to give companies incentives on incremental sales from products manufactured in domestic units. The PLI scheme was mainly announced to reduce India’s dependence on China for such components. Currently, India meets its semiconductors demands via imports, which is currently at about $24 billion and is expected to reach around $100 billion by 2025.

 

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