India Semiconductor Mission :
India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India’s long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem. Envisioned to be led by global experts in the Semiconductor and Display industry, ISM will serve as the nodal agency for efficient, coherent and smooth implementation of the schemes.
Four schemes have been introduced under the programme:
Depending on technology node GOI has announced fiscal support to the companies. Following fiscal support has been approved and announced :
- 28nm or Lower - Up to 50% of the Project Cost
- Above 28 nm to 45nm - Up to 40% of the Project Cost
- Above 45 nm to 65nm - Up to 30% of the Project Cost
Visit the web page for ISM to get the whole picture.
Department of Telecommunications (DoT) notified on 24th February 2021 about the “Production Linked Incentive (PLI) Scheme” . Objective of such a scheme was to boost domestic manufacturing, investments and export in the telecom and networking products. The PLI Scheme is planned to be implemented within the overall financial limits of ₹ 12,195 Crores over a period of 5 years. For MSME category, ₹1000 Crores have allocated. SIDBI or Small Industries Development Bank of India has been appointed as the Project Management Agency (PMA) for the PLI scheme.The scheme have been effective from 1st April, 2021. Investment made by successful applicants in India from 1 st April, 2021 onward and up to Financial Year (FY) 2024-2025 shall be eligible, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. from FY 2021-22 to FY 2025-26.
Government of India has identified 14 sectors under the production linked incentive (PLI) schemes . The domestic electronics hardware manufacturing sector suffers disability of around 8.5% to 11% on account of lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development. As per Honorable FM Nirmala Sitaraman incentives are necessary to provide enough ground for people to come out of China and invest in India.She further explained that the idea of Atmanirbhar campaign is not to make goods produced using imported components more expensive. Sitaraman added that the principle of Atmanirbhar Bharat is to build capacities in India and scale up production inside India. Furthermore, the PLI applies to areas where India has good advantages which includes sectors that are scalable, the products of which have a demand and market in India, and where jobs can be added. Honerable finance minister added that the government is working on bringing in newer areas where the future lies within the PLI scheme.
Visit the webpage and read the detail of the PLI scheme.
In September this year, the Union Cabinet approved changes to the semiconductor PLI scheme, allowing for uniform fiscal support of 50 per cent of project cost for semiconductor fabs across technology nodes and display manufacturing. It also raised the fiscal support for compound semiconductors, packaging and other semiconductor facilities to 50 per cent from 30 per cent earlier.
India, Israel, the US and the UAE is looking to form an alliance for chip manufacturing. Ambassador of Israel Naor Gilon said on this context that the world was changing and countries were now looking for regional alliances. The group of four is set to work on infrastructure with an emphasis on technology. “India brings in technology and a huge market. The UAE brings in finances and ability to transport and build business. The Americans are bringing the full package. We are the smallest player here and are bringing technology. This alliance is extremely important for the future of our countries,” he added.
