Govt's strategic plan to boost chip manufacturing in India

The Indian government is planning to approve proposals for semiconductor plants to support the Make in India initiative.

This move aims to boost domestic manufacturing, attract investments, and strengthen the semiconductor industry.

On June 1, the government reopened the opportunity for new applications for advanced and well-established technology in the field of semiconductors.

This was done through the modified semiconductor scheme.

Reopening the Window for Fresh Fab Applications

The Ministry of Electronics and Information Technology (@GoI_MeitY) has reopened the application window for new fabrication facilities (fabs) targeting leading mature nodes. This decision was made following the closure of the January 2022 window, as the policy has been improved to encourage mature nodes with equal incentives. IT Minister Rajeev Chandrasekhar shared this information in a tweet.

The Indian government has reopened the application window for establishing advanced semiconductor nodes as part of the modified semiconductor scheme.

Yet another reuters mischaracterization 🤷🏻‍♂️🤷🏻‍♂️

Yday @GoI_MeitY has reopened the window for fresh fab applications for leading n mature nodes.

This is being done since the Jan 2022 window was closed bfr policy was improved to encourage mature nodes wth equal incentives.

You hv… pic.twitter.com/2khDfts1a3

— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) June 1, 2023

This decision follows the closure of the previous window in January 2022 and includes improved policies that offer equal incentives for mature nodes.

The goal is to attract both existing and new players to apply for different nodes, thereby promoting a diverse and strong semiconductor ecosystem.

Driving Investments and Approvals

The Indian government has already granted approval to various semiconductor design companies and has received proposals for packaging and mature node fabs.

In the near future, there are expectations that several proposals for semiconductor packaging and fabs will be approved, marking a significant advancement in indigenous semiconductor manufacturing.

The government is actively working to create an investment-friendly environment, which will support technology transfer, research and development partnerships, and skill development in the semiconductor sector.

The Indian government has introduced a production-linked incentive (PLI) scheme worth Rs 76,000 crore to promote semiconductor and display manufacturing units.

This scheme is designed to attract international companies and incentivise them to establish their manufacturing facilities in India.

Furthermore, the government has allocated Rs 1,200 crore to invest in domestic semiconductor design startups, aiming to support innovation and nurture local talent in the semiconductor industry.