NEW DELHI: The government on Wednesday invited fresh applications for setting up Semiconductor Fabs and Display Fabs units in the country from June 1, 2023. A fiscal incentive of 50% of the project cost is available to applicants for setting up of Semiconductor Fabs and Display Fabs units of any node (including mature nodes). Companies can apply for the scheme till December 2024. The application will be received by India Semiconductor Mission (ISM).
“Semiconductor Mission is announcing that it will start accepting and considering new applications for fabs from new and existing applicants,” tweeted Rajeev Chandrasekhar, Minister of State, Ministry of Electronics and IT.
He said the first window for more expensive 28 nanometer fabs was kept open for 45 days only in January 2022 and received three applications that were evaluated by ISM and its advisory group. “Strategy now is encouraging mature nodes of >40nm - current and new players may apply afresh in various nodes that they have technology for. It is expected some existing applicants will reapply and fresh investors will also apply,” he said in a tweet.
Last year, a Vedanta and Foxconn joint venture had announced investment of Rs 1,54,000 lakh crore in Gujarat to set up a semiconductor fab. The government, reportedly, has rejected Vedanta’s joint venture request to get incentives. As per the government, the JV is unable to meet requirements set by the government to get funding, and the firms lack a technology partner and a manufacturing-grade technology licence for construction of 28 nanometer chips.
The reopening of the application process will give Vedanta and other big companies such as GlobalFoundries, Intel, TSMC, and Samsung to set up operations in the country. The government launched the Semicon India Programme in December 2021, allocating Rs 76,000 crore for development of semiconductor and display manufacturing ecosystem.
50% incentive of project cost available to applicants
A fiscal incentive of 50% of the project cost is available to applicants for setting up of Semiconductor Fabs and Display Fabs units of any node (including mature nodes). Companies can apply for the scheme till December 2024.