Government has invited applications for setting up Semiconductor and Display Fabs as per Modified Semicon India Programme from June 1, 2023

With effect from June 1, 2023, the Modified Semicon India Programme will be accepting new applications for the establishment of Semiconductor Fabs and Display Fabs in India. The applications will be received by the India Semiconductor Mission, the designated nodal organisation in charge of carrying out the Modified Semicon India Programme for the growth of the semiconductor and display manufacturing ecosystem in India.

Companies, consortiums, and joint ventures can apply for a financial incentive under the Modified Programme that will cover 50% of the project cost when establishing semiconductor fabs in India at any node (even mature nodes). The establishment of Display Fabs using a particular technology in India is also eligible for a tax credit equal to 50% of the project cost.

The application period for the "Modified Scheme for Establishing Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, and Semiconductor ATMP/OSAT Facilities in India" is open until December, 2024. Further, the application window for the Design Linked Incentive (DLI) Scheme is open until December, 2024. Five applications under the DLI Scheme have been accepted as of this point, out of 26 total applications.

The Semicon India Programme was introduced by the government in December, 2021 with an investment of US$ 9.19 billion (Rs. 76,000 crore) for the growth of the semiconductor and display manufacturing ecosystem in India. All applicants who submitted applications under the Semiconductor Fab Establishment Scheme and the Display Fab Establishment Scheme (previous schemes) are eligible to submit applications under the Semiconductor Fab Establishment Scheme and the Display Fab Establishment Scheme after making the necessary modifications to their proposals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.