The Gazette has notified a scheme that will extend fiscal support to companies/ consortia/ joint ventures (JVs) proposing to set up silicon CMOS-based semiconductor fab in India for the manufacture of logic/ memory/ digital ICs/ analog ICs/ mixed signal Ics/SoCs.

The Gazette notified on Tuesday said the government will give fiscal support of 50 per cent of the project cost. The development comes after the Cabinet on September 21 approved a production-linked incentive (PLI) scheme in which it approved uniform fiscal support of 50 per cent of project cost for semiconductor fab across technology nodes and display manufacturing.

It also raised fiscal support for compound semiconductors, packaging and other semiconductor facilities to 50 per cent from 30 per cent earlier, modifying incentives of over ₹76,000 crore that the government announced in December 2021.

The applicant companies/ consortia /JVs should own or possess production grade licensed technologies for the proposed technology process and demonstrate a roadmap to advanced nodes technologies through licensing or development as an operational experience with minimum capital investment of ₹20,000 crore as the capital expenditure threshold and a revenue threshold of a minimum of ₹7,500 crore (including group companies) in any of the three financial years preceding the year of submission, the notification said.

According to the gazette notification, the government may extend the benefits of the modified electronics manufacturing clusters (EMC 2.0) scheme for development of infrastructure/ common facility centres subject to the proposal satisfying the EMC 2.0 framework requirements.

It also said the semiconductor fab(s) set-up in India will be supported through purchase preference in procurement of electronic products by the government under the Public Procurement (Preference to Make in India) Order 2017.

“The scheme guidelines will be issued by the Ministry of Electronics and Information Technology (MeitY) separately with the approval of the Minister of Electronics and Information Technology. The scheme and its guidelines shall be reviewed and amended periodically or in line with the approval of the Minister of Electronics and Information Technology,” it added.

social-fb COMMENT NOW