GS Paper - 2 (Polity)

The Government notified the semiconductor policy which was cleared by the Cabinet last week. According to the gazette notification, the government will provide up to 50% of Project cost for two semiconductor and two display fabs in the country.

What

  1. The Application window starts 1 January 2022 and will be open for 45 days. Support under the scheme shall be provided on pari-passu basis for a period of six years.
  2. Additional support of infrastructure will be provided through EMC2.0 scheme, demand aggregation, support for R&D, Skill Development and Training along with support offered by the State Government if any.
  3. This will attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.
  4. Companies / Consortia / Joint Ventures proposing to set up a Silicon CMOS based Semiconductor Fab in India for manufacturing Logic / Memory / Digital ICs / Analog ICs / Mixed Signal ICs / SoCs will be eligible.
  5. The Scheme aims to attract investments for setting up Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted electronics value chain in the areas of application of these fabrication and packaging technologies.
  6. It also said that Design Linked Incentive (DLI) scheme shall offer financial incentives as well as design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), over a period of 5 years.