Indian government has announced a major $10 billion investment to strengthen its semiconductor and display manufacturing ecosystem. This investment, part of the Semicon India Program, is aimed at boosting India’s technological capabilities and establishing the country as a key player in the global semiconductor market. This move aligns with the Aatmanirbhar Bharat (Self-Reliant India) vision, which seeks to reduce dependence on foreign technology and promote domestic production.
Incentives to Attract Investments
Under the Semicon India Program, the government has introduced various incentives to attract significant investments in semiconductor and display fabrication facilities. Companies setting up these facilities across different technology nodes will receive a 50% incentive on project costs. This support extends to investors in compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities, who will also receive 50% support on capital expenditures.
By offering these incentives, the Indian government aims to create a sustainable and self-reliant environment for the semiconductor industry. This will help India become a leader in technology and innovation, further strengthening its global position.
Semiconductor Ecosystem in India
The Indian government’s initiative goes beyond just attracting foreign investments. It also focuses on nurturing the domestic semiconductor ecosystem. To support local companies, the government is offering up to 50% reimbursement on eligible expenditures for domestic semiconductor design companies, startups, and Micro, Small, and Medium Enterprises (MSMEs).
Additionally, a deployment-linked incentive ranging from 4% to 6% of net sales turnover over five years is provided. This support includes access to design infrastructure, such as prototyping and post-silicon validation facilities, fostering innovation and growth within the country.
Research, Development, and Training
Recognizing the importance of research and development, the Indian government plans to establish a specialized institution under the Semicon India Program. This institution will focus on advancing research, development, and talent cultivation within the semiconductor sector.
To ensure a skilled workforce for this growing industry, a comprehensive training program will be implemented. The program aims to develop 85,000 semiconductor engineers, providing the necessary skills to support the sector’s growth and innovation.
