New Delhi: The government will continue providing up to 70 percent of project cost as incentives for critical semiconductor manufacturing projects, Electronics and IT Secretary S Krishnan announced on Tuesday. The support combines contributions from both the Centre and state governments.
Strong Policy Backing for Semiconductors
Speaking at the Semicon India event, Krishnan highlighted that India’s assistance for semiconductor initiatives remains unparalleled. Around USD 30 billion in incentives and benefits are already under implementation.
He explained that central support covers 50 percent of capital costs, while states provide an additional 20 percent. “I’ve never come across in all these years a programme as generous as this, with almost 70 percent support. Such assistance will definitely continue for crucial and strategic segments,” Krishnan said.
Focus on Fabs and Display Technology
Krishnan stressed that semiconductor fabs, display fabs, and related devices are vital for India’s technology ecosystem. He added that display fabs would remain a key focus under India Semiconductor Mission (ISM) 2.0.
Prime Minister Narendra Modi had earlier in the day announced plans for a new semiconductor mission and an expanded design-linked incentive (DLI) scheme.
Expanding the Scope of DLI
Krishnan noted that the DLI programme, so far limited to startups and SMEs, will now be broadened. “We are looking to support larger domestic companies and increase assistance, both in terms of grants and access to risk capital,” he said.
At present, MSMEs and startups receive up to USD 2 million in grants under the DLI scheme. Presentations at the event indicated that future plans may extend these benefits to bigger design firms as well.
Industry Welcomes Government Push
MediaTek India managing director Anku Jain said India’s semiconductor sector has seen unprecedented policy backing in the past five years. He added that expanding the DLI scheme will provide a significant boost to the domestic semiconductor ecosystem.
