Programme for Development of Semiconductors and Display Manufacturing Ecosystem

Program Approval:

1. Objective: Enhance India’s semiconductor and display manufacturing industry.
2. Budget: ₹76k crore (>10 billion USD) allocated.

Key Modifications:

1. Financial Support:
   1. Semiconductor Fabs: 50% of project cost covered.
   2. Display Fabs: 50% of project cost covered.
   3. Other Facilities: 50% of capital expenditure supported for compound semiconductors, silicon photonics, sensors, and semiconductor packaging facilities.

Schemes Under the Program:

1. Semiconductor and Display Fabs:

   1. Support: 50% of project cost for eligible projects.
   2. Goal: Establish at least two new semiconductors and two display fabs.
   3. Support Structure: Collaboration with state governments to build necessary infrastructure.

2. Compound Semiconductors and Related Facilities:

   1. Support: 50% of capital expenditure.
   2. Goal: Set up at least 20 new units for compound semiconductors and semiconductor packaging.

3. Semiconductor Design:

   1. Incentives:
      1. Up to 50% of eligible design expenditure.
      2. Product deployment incentives ranging from 6% to 4% on net sales for five years.
   2. Target: Support 100 domestic design companies and help 20 companies achieve over ₹1500 crore in turnover.

4. Semi-Conductor Laboratory (SCL):

   1. Action: Modernize and commercialize SCL in Mohali.
   2. Plan: Explore joint ventures with commercial partners for modernization.

India Semiconductor Mission:

1. Purpose: Guide long-term strategies for developing the semiconductor and display ecosystem.
2. Leadership: Led by global experts.
3. Role: Manage and implement the semiconductor and display fab schemes efficiently.

Significance of Modified Programme for Development of Semiconductors and display manufacturing ecosystem

1. Boosts Local Manufacturing: Encourages domestic production of semiconductors and display technologies, reducing reliance on imports. Targets include establishing at least 2 semiconductor and 2 display fabs (Government of India, 2022).
2. Attracts Investment: Offers 50% financial support for setting up fabs, attracting significant foreign and domestic investment. Expected to channel ₹76,000 crore into the sector, supporting economic growth (NITI Aayog, 2023).
3. Enhances Technology Capabilities: Supports advanced technology areas like compound semiconductors and silicon photonics. Aims to set up 20 new units, boosting India’s position in cutting-edge tech (Ministry of Electronics and IT, 2023).
4. Promotes Domestic Design: Provides up to 50% design expenditure incentives for semiconductor design companies, aiding 100 firms. Supports growth in ICs, chipsets, and SoCs, fostering innovation (Design Linked Incentive Scheme, 2023).
5. Modernizes Existing Infrastructure: Focuses on upgrading the Semi-Conductor Laboratory (SCL) in Mohali. Plans include joint ventures for modernization, enhancing existing facilities and capabilities (Union Cabinet, 2023).

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