Cabinet took decision, India Semiconductor Mission approved, government will spend 76000 crores in 6 years under PLI scheme

Production Linked Incentive (PLI Scheme) for making semiconductors has been approved in the cabinet meeting chaired by Prime Minister Narendra Modi today. 76,000 crores will be spent on this project in 6 years. Under this, an incentive amount of Rs 2.3 lakh crore will be given. Union Minister Ashwini Vaishnav gave this information. It will be run by the establishment of ‘India Semiconductor Mission’.

Semiconductors are essential for electronic items

Semiconductor is one of the major components used in all types of electronic products. Production of smartphones, laptops, cars and a variety of products has been adversely affected in the recent past due to a decrease in the supply of semiconductors around the world. At a time when industrial production has been affected due to microchip shortage, the move by the government will benefit semiconductor makers. This will help the company to become an electronic hub.

Incentive can be given in 3 ways

Ashwini Vaishnav said that the government has approved a PLI scheme of Rs 76,000 crore for the next 6 years for semiconductor production in the country. This incentive can be given in 3 ways. In this, 25% incentive capital can be given on the capital expenditure of the unit for compound semiconductor wafer fabrication, assembling, testing, packaging and production.

Startups can also get a chance

It is also proposed to give incentives to startups working on designing, development and production of Miconductor. The government estimates that an investment of Rs 1.7 lakh crore can come from the industries under this scheme. Along with this, it is also expected that under this scheme, companies like Media Tech, Intel Qualcomm, Texas Instruments may be encouraged to set up their units in India.

Semiconductor shortage all over the world

The government is preparing to come up with this scheme at a time when the whole world is facing the problem of shortage of semiconductor supply. According to sources, the government is in the process of setting up two fab units for semiconductor demonstration. Under this scheme, there is a plan to make India a semiconductor manufacturing hub.