Indian govt allocates USD10 Billion investment for Semiconductor

The Indian government has revealed plans to invest $10 billion in the semiconductor and display manufacturing ecosystem as part of efforts to boost its technological capabilities. This significant allocation, through the Semicon India Program, shows India's dedication to strengthening its position in worldwide supply chains and aligning with the vision of Aatmanirbhar Bharat (Self-Reliant India).

It is anticipated that the initiative will make India a key player in the global semiconductor market, which is forecasted to reach $110 billion by 2030. The program in Semicon India offers incentives aimed at drawing in investments on a large scale. Semiconductor and display manufacturing facilities at different technology levels will be given a 50% incentive for their project expenses.

Investors in compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities will get 50% support on capital expenditures. The Indian government's goal in offering these incentives is to support the semiconductor industry and encourage self-sufficiency and technological advancement.

The effort extends further than simply drawing in overseas investments; it also emphasizes developing the local semiconductor ecosystem. The government is providing reimbursement of up to 50% on qualified expenses for local semiconductor design firms, startups, and MSMEs.

Furthermore, there is a deployment-related incentive available, which varies from 4% to 6% of net sales turnover for a period of five years. The assistance also covers developing infrastructure, which includes providing access to prototyping and post-silicon validation facilities, with the goal of promoting innovation and development within the nation.