New Delhi: The government’s decision to sweeten the incentives offered under the mega scheme for semiconductor manufacturing and display fabs will nudge global players to invest in setting up local production units and spur job opportunities, according to the industry.
The government on Wednesday tweaked the Rs 76,000 crore incentive scheme for semiconductors and display manufacturing units, offering to give 50 per cent of the project cost across all categories of factories as it looked to woo global players such as Intel to set up production base in India to help cut reliance on imports.
“Given that the government has already announced the PLI and DLI scheme to encourage local manufacturing, this fiscal support will further provide the much-needed impetus to the semiconductor ecosystem,” said Sanjay Gupta, Vice President and India Managing Director at NXP Semiconductors.
The investment in manufacturing has already started to pick up pace in the country, Gupta noted.
“This move will further attract global semiconductor players to invest in setting up local manufacturing units and create employment opportunities across hierarchies,” Gupta added.
India Electronics and Semiconductor Association said the policy and its modification have “an astute clarity in terms of the deliverables, timelines and percentages of capital outlays as compared to many policies in this space, worldwide.”
“This will further accrue large investments by companies to set up chip design and manufacturing facilities in India. Both the Production Linked Incentive (PLI) scheme… And ‘Make in India’ will make sure that local sourcing of semiconductors and associated components are a reality in the recent future,” said Anurag Awasthi, Vice President (Public Policy, Government and Corporate Relations), India Electronics and Semiconductor Association.
PTI