Govt reopens application window for US$10 billion chip manufacturing plan

The purpose is to encourage more proposals after enhancing the scheme in September 2022

June 1, 2023

The government's current strategy is to focus on mature nodes that exceed 40 nanometers

Both existing and new players will have the opportunity to apply again in the specific technology nodes where they possess the necessary expertise

The government aims to attract significant investments through a US$ 10 billion incentive plan for chip and display production

The first application window, dedicated to more expensive 28-nanometer fabrication plants, was open for a limited period of 45 days in January 2022

The government has decided to reopen the application window for its INR 76,000 crore semiconductor manufacturing plan, according to Rajeev Chandrasekhar, Minister of State for Electronics and IT. The previous window, which closed last year, faced obstacles with the three applications it received in setting up their respective plants.

The purpose of reopening the window is to encourage more proposals after enhancing the scheme in September 2022. The government made adjustments by offering uniform fiscal support of 50% of the project cost for semiconductor fabs across different technology nodes and display manufacturing.

Chandrasekhar mentioned that the government’s current strategy is to focus on mature nodes that exceed 40 nanometers. Both existing and new players will have the opportunity to apply again in the specific technology nodes where they possess the necessary expertise. It is anticipated that some of the previous applicants will reapply, and new investors will also express interest.

The government aims to attract significant investments through a US$ 10 billion incentive plan for chip and display production, where the objective is to establish India as a prominent player in the global supply chain. Previously, the government had announced its commitment to provide financial support for new semiconductor facilities, covering 50% of the project costs. Additionally, the ceiling for maximum permitted investment in display manufacturing will be eliminated.

The first application window, dedicated to more expensive 28-nanometer fabrication plants, was open for a limited period of 45 days in January 2022. During this time, three proposals were submitted and evaluated by the India Semiconductor Mission and its Advisory Group.

Sources: Indian Express | CNBC

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