Govt to meet 50% of project cost for semiconductor fabs across all technology nodes and packagings

Under modified programme, a uniform fiscal support of 50% of Project Cost shall be provided across all technology nodes for setting up of Semiconductor Fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall also provide fiscal support of 50 per cent of Capital Expenditure in pari-passu mode for setting up of compound semiconductors / silicon photonics / sensors / Discrete semiconductors fabs and ATMP/OSAT.

The fiscal support of 50 per cent of capital expenditure will be provided on pari-passu basis under Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP /OSAT facilities in India. Additionally, target technologies under the Scheme will include Discrete Semiconductor Fabs.

The programme, which has attracted many global semiconductor players, is expected to expedite investments in semiconductor and display manufacturing in India. On the basis of discussion with potential investors, the government expects the work on setting up of the first semiconductor facility to commence soon.

The government has constituted an Advisory Committee comprising global experts from industry and academia to advise India Semiconductor Mission - the nodal agency for the programme for development of semiconductors and display manufacturing ecosystem in India. The committee has unanimously recommended uniform support for all technology nodes of silicon semiconductor fabs / Silicon Photonics / Sensors / Discrete Semiconductor Fabs and ATMP/OSAT, which has been accepted by the government. The technology nodes of 45nm and above have high demand which is inter-alia driven by Automotive, Power and Telecom applications. Moreover, this segment constitutes around 50 per cent of the total semiconductor market, says an official release.