: Cabinet gives nod to semiconductor proposal; allots $ 10 billion for its development #finance #StockMarketNEWS Cabinet gives nod to semiconductor proposal; allots $ 10 billion for its development

Cabinet gives nod to semiconductor proposal; allots $ 10 billion for its development #finance #StockMarketNEWS
Cabinet gives nod to semiconductor proposal; allots $ 10 billion for its development New Delhi, 15 Dec (KNN) The Union Cabinet chaired by Prime Minister Narendra Modi has approved the comprehensive program for the development of sustainable semiconductor and display ecosystem in the country.

The program envisions to enter a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and it will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations, said the press release.

It also aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.

The Scheme for setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to applicants who are found eligible and have the technology as well as capacity to execute such highly capital intensive and resource incentive projects.

Government of India will work closely with the State Governments establish High-Tech Clusters with requisite infrastructure in terms of land, semiconductor grade water, high quality power, logistics and research ecosystem to approve applications for setting up atleas ttwo greenfield Semiconductor Fabs and two Display Fabs in the country.

On approval from Union Cabinet the Ministry of Electronics and Information Technology will take requisite steps for modernization and commercialization of Semi-conductor Laboratory (SCL). MeitY will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.

The Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India will be covered under the scheme and shall extend fiscal support of 30% of capital expenditure to approved units.

At least 15 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established with Government support under this scheme.

The Design Linked Incentive (DLI) Scheme shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% - 4% on net sales for five years.

Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design and facilitating the growth of not less than 20 such companies which can achieve turnover of more than INR 1500 crore in the coming five years.