In a serious attempt to make up for lost time in semiconductor manufacturing, the Indian government has started working on a huge new package over and above the Rs 76,000-crore incentives already given out, ToI reported on April 29.
The 76,000-crore incentive package was launched in December 2021 to support companies making semiconductors and investing in them. That amount has been nearly exhausted, necessitating a fresh boost for India's big chip plan.
The new package will "in all likelihood be much bigger than the previous one", the ToI report (by Pankaj Doval) said, adding that the announcement to this effect will be made after a new govt takes office.
This package is going to be one of the key agenda for the new govt and it will be done on a priority basis, the report said citing sources. The sources also told the newspaper that many new proposals have come in for semiconductors.
Some of the proposals are at an advanced stage and would hence require decisions from the Centre in terms of incentives, the report said.
The success of the December 2021 package is inspiring the government to develop a new one, particularly considering the aggressive approaches of countries like the US and China, which have revealed significantly larger packages for companies investing in semiconductors.
The government currently provides fiscal support for up to 50% of a project's cost to eligible display and semiconductor fabricators. This support has nearly run out due to the recent influx of investments.
India had previously struggled to receive any viable proposals for semiconductor manufacturing despite years of effort. Eventually, the country achieved a significant milestone when American Micron became the first major player to establish a Rs 22,500-crore testing and packaging unit in Gujarat in June last year.
Then came approvals for three proposals totaling almost Rs 1.3 lakh crore in February of this year. These include: a Rs 91,000-crore project by Tata Electronics to establish India’s inaugural semiconductor fabrication unit in collaboration with Taiwanese Powerchip Semiconductor Manufacturing Corp in Dholera, Gujarat; a Rs 27,000-crore Semiconductor Assembly and Test (TSAT) unit by Tata in Morigaon, Assam; and a Rs 7,600-crore project by CG Power with Japanese Renesas Electronics and Stars Microelectronics of Thailand.
The government has now received new proposals that are at an advanced stage of discussions, the report said. These proposals include a display fab unit proposal, which would be the country's first, by Japanese Sharp that could attract investments of up to Rs 40,000 crore. Additionally, there is a plan worth Rs 90,000 crore from Israel's chipmaker Tower Semiconductors for investments in India.
The 76,000-crore incentive package was launched in December 2021 to support companies making semiconductors and investing in them. That amount has been nearly exhausted, necessitating a fresh boost for India's big chip plan.
The new package will "in all likelihood be much bigger than the previous one", the ToI report (by Pankaj Doval) said, adding that the announcement to this effect will be made after a new govt takes office.
This package is going to be one of the key agenda for the new govt and it will be done on a priority basis, the report said citing sources. The sources also told the newspaper that many new proposals have come in for semiconductors.
Some of the proposals are at an advanced stage and would hence require decisions from the Centre in terms of incentives, the report said.
The success of the December 2021 package is inspiring the government to develop a new one, particularly considering the aggressive approaches of countries like the US and China, which have revealed significantly larger packages for companies investing in semiconductors.
The government currently provides fiscal support for up to 50% of a project's cost to eligible display and semiconductor fabricators. This support has nearly run out due to the recent influx of investments.
India had previously struggled to receive any viable proposals for semiconductor manufacturing despite years of effort. Eventually, the country achieved a significant milestone when American Micron became the first major player to establish a Rs 22,500-crore testing and packaging unit in Gujarat in June last year.
Then came approvals for three proposals totaling almost Rs 1.3 lakh crore in February of this year. These include: a Rs 91,000-crore project by Tata Electronics to establish India’s inaugural semiconductor fabrication unit in collaboration with Taiwanese Powerchip Semiconductor Manufacturing Corp in Dholera, Gujarat; a Rs 27,000-crore Semiconductor Assembly and Test (TSAT) unit by Tata in Morigaon, Assam; and a Rs 7,600-crore project by CG Power with Japanese Renesas Electronics and Stars Microelectronics of Thailand.
The government has now received new proposals that are at an advanced stage of discussions, the report said. These proposals include a display fab unit proposal, which would be the country's first, by Japanese Sharp that could attract investments of up to Rs 40,000 crore. Additionally, there is a plan worth Rs 90,000 crore from Israel's chipmaker Tower Semiconductors for investments in India.
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