In a strategic move to enhance its technological capabilities, India government has announced a $10 billion investment in semiconductor and showcase the manufacturing ecosystem.
This significant allocation, under the Semicon India Programme, reflects India’s commitment to strengthening its position in global supply chains and aligning with the vision of Aatmanirbhar Bharat (Self-Reliant India).
The move is expected to transform India into a major player in the global semiconductor market, which is projected to reach $110 billion by 2030.
#NewIndia has allocated USD 10 billion to develop the semiconductor and display manufacturing ecosystem, reinforcing the vision of #AatmanirbharBharat.
Find out more here: https://t.co/q1JWurcjZ8#InvestInIndia #Semiconductors @GoI_MeitY @AshwiniVaishnaw @MakeInIndia @DPIITGoI image.twitter.com/Sy4AB18YZF— Investing in India (@investindia) August 10, 2024
Incentives to attract large investments
The Semicon India programme includes incentives designed to attract large-scale investments. Semiconductor and display manufacturing facilities in various technology nodes will receive a 50% incentive on project costs.
The support extends to investors in compound semiconductors and outsourced semiconductor assembly and test (OSAT) facilities, who will also receive 50% support on capital expenditure.
By offering these incentives, the Indian government aims to create a sustainable environment for the semiconductor industry, promoting self-reliance and technological leadership.
Supporting the domestic semiconductor ecosystem
The initiative goes beyond simply attracting foreign investment; it also focuses on nurturing the domestic semiconductor ecosystem.
The government is offering a reimbursement of up to 50% of eligible expenses to domestic semiconductor design companies, startups and MSMEs.
In addition, an implementation-linked incentive ranging from 4% to 6% of net sales volume is offered for five years.
Support extends to design infrastructure, including access to prototypes and post-silicon validation facilities, with the aim of fostering innovation and growth within the country.
Focus on research, development and workforce training.
Recognizing the importance of research and development, a dedicated institution will be established under the Semicon India Programme.
The institution will focus on promoting research, development and talent cultivation within the semiconductor sector.
A comprehensive training programme is also planned to develop 85,000 semiconductor engineers, ensuring the country has a skilled workforce capable of supporting the growth of the sector.
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