The Centre on Wednesday made changes to the Rs 76,000 crore incentive programme for semiconductor and display manufacturing units, offering to cover 50 percent of the project cost for all types of factories in an effort to entice multinational corporations to establish a production base in India and reduce reliance on imports reported PTI.
The production-linked incentive, or PLI, scheme, unveiled in December 2021, provides for various levels of financial assistance to various categories for the growth of India's semiconductor and display manufacturing ecosystem. These were between 30 and 50 percent. Now that this has been standardised, the government will cover 50 percent of the project cost for the establishment of semiconductor fabs across all technology nodes, not just cutting-edge computing but also those that are used in the telecom, automotive, and power industries, amongst others.
Union minister of state for IT Rajeev Chandrasekhar, the report suggested said that the development will help make the semiconductor policy "extremely competitive" and draw investment from a varietyof sources, including silicon and compound fabs, packaging facilities, display fabs, and the design and innovation ecosystem. Chandrasekhar said MNCs are looking into India as a potential location for semiconductor investment.