In furtherance of the vision of Aatmanirbhar Bharat and positioning India as the global hub for ESDM, a comprehensive program for the development of semiconductors and display manufacturing ecosystem in India was approved by Government of India with an outlay of ₹ 76,000 crore (>10 billion USD). The Programme contained various schemes to attract investments in the field of semiconductors and display manufacturing. The Union Cabinet in its meeting held on 21.09.2022 has accorded its approval for modification of this programme. Following modifications have been approved:

1. Fiscal support of 50% of Project Cost on pari-passu basis for all technology nodes under Scheme for Setting up of Semiconductor Fabs in India.
2. Fiscal support of 50% of Project Cost on pari-passu basis under Scheme for Setting up of Display Fabs.
3. Fiscal support of 50% of Capital Expenditure on pari-passu basis under Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP /OSAT facilities in India. Additionally, target technologies under the Scheme will include Discrete Semiconductor Fabs.

The programme 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 / Discrete Semiconductor Fabs, Semiconductor Packaging (ATMP / OSAT) and Semiconductor Design.

Accordingly, the Modified Programme for development of Semiconductors and Display manufacturing ecosystem in India offers following Schemes:

Semiconductor Fabs and Display Fabs: The Modified Schemes for Setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of 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 and resource intensive projects. Government of India will work closely with the State Governments to 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 at least two greenfield Semiconductor Fabs and two Display Fabs in the country.

Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs/ Discrete Semiconductor Fabs and Semiconductor ATMP / OSAT Units: The Modified Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs / Discrete Semiconductor Fabs and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 50% of capital expenditure on pari-passu basis to applicants who are found eligible and have the technology to execute such projects. At least 20 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established with Government support under this scheme.

Semiconductor Design Companies: 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 Rs.1500 crore in the coming five years.

Semi-conductor Laboratory (SCL): Union Cabinet has also approved that Ministry of Electronics and Information Technology will take requisite steps for modernization and commercialization of Semi-conductor Laboratory (SCL), Mohali. MeitY will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.

India Semiconductor Mission: In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent “India Semiconductor Mission (ISM)” has been set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes for setting up of Semiconductor and Display Fabs.

Basic Custom Duty (BCD) Exemption for Semiconductor Manufacturing in India22.89 KB

Modified Programme for Semiconductors and Display Fab Ecosystem

Scheme	Notification	Guidelines
Notification for amendment in the Schemes notified under the Modified Programme for Semiconductors and Display Manufacturing Ecosystem in India	Link of Notification584.03 KB
Modified Scheme for setting up of Semiconductor Fabs in India	Link of Notification1.21 MB	Link of Guidelines293.39 KB
Modified Scheme for setting up of Display Fabs in India	Link of Notification1.37 MB	Link of Guidelines293.52 KB
Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductor Fabs and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India	Link of Notification1.32 MB	Link of Guidelines (Dated: 30th June, 2023)277.21 KB Link of Guidelines (Dated: 10th October, 2022)313.76 KB
Design Linked Incentive (DLI) Scheme	Link of Notification1.32 MB	Link of Guidelines254.11 KB

 

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