India launches $10bn scheme to support semiconductor fabs

Published: 26-Jan-2022

The government of India has established an over $10bn scheme to provide financial and other support to those looking to set up fabs in the country

The government of India has established a 'Scheme for setting up of semiconductor fabs in India'.

The scheme aims to bring large investments for setting up semiconductor wafer fabrication facilities into the country to strengthen the electronics manufacturing ecosystem.

The scheme, set to run for six years, extends financial support in order to established Silicon CMOS based semiconductor fabs in India depending on the technology node. These include: 28nm or Lower - Up to 50% of the Project Cost, Above 28 nm to 45nm - Up to 40% of the Project Cost, Above 45 nm to 65nm - Up to 30% of the Project Cost.

Apart from the financial support, these fabs will be supported through purchase preference in procurement of electronic products by the Government under the Public Procurement (Preference to Make in India) Order.

The entities proposing to set up semiconductor fabs can apply under the scheme starting from 1st January 2022. The application period will be for a period of forty-five days which is extendable.

The government of India is also in discussion with state governments to establish semiconductor cluster(s) with the infrastructure to meet the stringent power and water requirements of semiconductor fabs and display fabs. State governments shall also make land, water and power available at a highly subsidised rate for the semiconductor cluster(s) and may offer additional incentives.

Post doctoral research at Aalto University, Harshad Mishra, said on LinkedIn: "Setting up of these cleanrooms will also be a huge way of inviting big tech firms like MS, IBM, Intel etc to extend their research bases to India. That will in turn also give a boost to the Quantum Computing initiative in India."

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