Scheme for Development of Semiconductors and Display Manufacturing Ecosystem – USPC Prelims

Aim: To provide attractive incentive support to companies that are engaged in Silicon Semiconductor Fabs (Fabrication plants), Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.
Components of the Mission:
  • Semiconductor Fabs and Display Fabs: 
    • Under this, the Government shall extend fiscal support of up to 50% of project cost to eligible applicants.
    • Govt will also work closely with the State Govts to establish High-Tech Clusters with requisite infrastructure for setting up at least two greenfield Semiconductor Fabs and two Display Fabs in the country.
  • Semi-conductor Laboratory (SCL): 
    • Under this, Ministry of Electronics and Information Technology will take requisite steps for modernization and commercialization of Semi-conductor Laboratory (SCL).
    • MeitY will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.
  • Compound semiconductor units and ATMP facilities: 
    • Compound semiconductor make chips that are used in mobile chargers, electric vehicles, and telecom radios.
    • Under this, the government will offer fiscal support of up to 30% of capital expenditure to the approved units.
    • The government expects over 15 such units to come up in this space.
  • Semiconductor Design Companies or Design Linked Incentive (DLI) Scheme: 
    • Under this, Government shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% – 4% on net sales for five years.
  • India Semiconductor Mission: The Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.
  • Chips to Startup Programme: Under this, the Government will create a talent pool of 85000 high-skilled engineers, which will help India in becoming a semiconductor hub. Semiconductor designers would be given the opportunity to launch start-ups.
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