India Allocates $10 Billion for Semiconductor and Display Manufacturing to Boost Self-Reliance
New Delhi, India – The Government of India has announced a significant investment of $10 billion under the Semicon India Program to develop the semiconductor and display manufacturing ecosystem. This initiative aims to support the vision of Aatmanirbhar Bharat (Self-Reliant India) and strengthen global supply chains.
According to Invest India, the national investment promotion and facilitation agency, the semiconductor market in India is projected to reach $110 billion by 2030, driven by the adoption of technologies like 5G, AI, IoT, and electric vehicles. The display market is expected to reach $15 billion by 2025.
The program offers a 50% incentive on project costs for semiconductor and display fabrication facilities across various technology nodes. Investors in compound semiconductor and OSAT (Outsourced Semiconductor Assembly and Test) facilities will receive 50% support on capital expenditures. This initiative aims to attract significant investments and strengthen India’s capabilities in advanced semiconductor technologies.
The scheme also supports domestic semiconductor design companies, startups, and MSMEs by offering up to 50% reimbursement on eligible expenditures and a deployment-linked incentive ranging from 6% to 4% of net sales turnover over five years. Additional support includes access to prototyping and post-silicon validation facilities.
A specialised institution will be established to drive the Semicon India Programme, focusing on research, development, and talent cultivation. The initiative includes a comprehensive training programme aimed at developing 85,000 semiconductor engineers to ensure a skilled workforce for the sector’s growth.
Fiscal support of 50% of project costs will be provided to approved investors for setting up wafer fabrication facilities. Similar incentives will be offered for display fabrication facilities, along with additional support for R&D and skill development. This investment aims to build a robust electronics manufacturing ecosystem in India.
Semiconductors are essential for modern electronic devices, including smartphones, cloud servers, and industrial automation systems. India’s growing semiconductor market is expected to influence global electronics supply chains, with significant growth in mobile and wearable technology, IT infrastructure, and consumer electronics.
Doubts Revealed
Semiconductor -: A semiconductor is a special material used in making electronic devices like computers and smartphones. It helps control electricity in these devices.
Display Manufacturing -: Display manufacturing is the process of making screens for devices like TVs, computers, and smartphones. These screens show us pictures and videos.
Aatmanirbhar Bharat -: Aatmanirbhar Bharat means ‘Self-Reliant India.’ It is a vision by the Indian government to make India more independent and strong by producing more things within the country.
Incentives -: Incentives are rewards or benefits given to encourage people or companies to do something. In this case, the government is giving rewards to companies to make semiconductors and displays in India.
MSMEs -: MSMEs stands for Micro, Small, and Medium Enterprises. These are small businesses that play a big role in the economy by creating jobs and making products.
Specialised Institution -: A specialised institution is a special school or organization focused on teaching and researching a specific subject. Here, it will train people to work with semiconductors.
85,000 Semiconductor Engineers -: These are people who will be trained to work with semiconductors. They will help make and improve electronic devices.