NEW DELHI: In a bid to develop the semiconductor and display manufacturing ecosystem in India, the government has allocated a total of Rs 6,903 crore in the interim budget.
This follows the announcement of Rs 76,000 crore in incentives in December 2021 to encourage companies to establish a semiconductor ecosystem in India.
The allocation includes Rs 1,500 crore for the Modified Scheme for Setting up of Semiconductor Fabs in India and Rs 4,203 crore for the Modified Scheme for setting up Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced semiconductor assembly and test facilities in the country.
Additionally, Rs 100 crore has been allocated for setting up display fabs in India, Rs 200 crore for the modernization of the semiconductor laboratory in Mohali, and Rs 200 crore for the design-linked incentive scheme.
According to the Ministry of Electronics and Information Technology, which oversees the semiconductor program, a total of 45 applications were received under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India.
This includes six applications for setting up semiconductor fabs, three for setting up display fabs, and ten for setting up compound and ATMP facilities. While one application has been approved under the ATMP scheme, nine have been approved under the design-linked incentive scheme.
Experts have welcomed the move, with Satya Gupta, President of the VLSI Society of India, expressing satisfaction with the allocation. However, he suggests that given the global interest in setting up semiconductor manufacturing in India, the allocation should have been around Rs. 10,000 crore.
“I'm very happy to see 6,000 crores allocated in the current budget for semiconductor and display manufacturing in India. Although I feel that with the number of proposals and the global interest in setting up semiconductor manufacturing in India, we will probably need about Rs. 10,000 crores allocation for 2024–25. But I'm very happy that this allocation has been increased from Rs. 3000 to Rs. 4000 crore,” said Gupta.