Govt expects major investments into India’s new semiconductor plan

By VARINDIA - 2022-09-22

Govt expects major investments into India’s new semiconductor plan

The government is expecting major investments under its plan to increase support for new semiconductor and display facilities. The current investment expectation is to the tune of at least $25 billion.

 

An outlay of Rs 76,000 crore was recently announced for the segment under the production-linked incentive scheme. The outlay is for the development of a semiconductor and display manufacturing electronics ecosystem in the country.

 

A report by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research sees the semiconductor component market in the country touching $300 billion in cumulative revenues by 2026.

 

The Modi government is seeking to attract more big-ticket investments under a $10 billion incentive plan for chip and display production, aiming to make India a key player in the global supply chain. The government had previously agreed to cover between 30% and 50% of the cost of setting up new display and chip plants. It will also cover 50% of the capital expenditure required to set up semiconductor packaging facilities.



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