Wednesday, May 29, 2024
HomeNewsGovt approves Rs 76,000 Cr scheme for Semiconductor Manufacturing

Govt approves Rs 76,000 Cr scheme for Semiconductor Manufacturing

The scheme will create over 35,000 new specialized job opportunities and more than 1 lakh indirect jobs.

The government of India approved a new Rs 76,000 crore production linked incentive scheme for semiconductor manufacturing. This new scheme will allow global semiconductor manufacturers to open production facilities in the country to make India a hub for microchip manufacturing. 

According to the minister of Information and Broadcasting of India, Anurag Thakur, the PLI scheme will be rolled out over the next five to six years. The scheme will also create thousands of new job opportunities for the citizens of India. Apart from specialized jobs, the scheme will generate more than 1 lakh indirect job opportunities in the country. 

Large scale companies will now be provided with attractive incentive support that are operating in the Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), and Semiconductor Designing industries. 

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The government said in an official statement, “The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a $1 trillion digital economy and a $5 trillion GDP by 2025.” 

The statement also mentioned that the development of the semiconductor and display ecosystem would have a multiplier effect across various sectors of the economy with deeper integration to the global value chain. 

Currently, the world is facing a global chip shortage due to various reasons, including the COVID-19 pandemic that forced many manufacturing facilities to shut down their operations. This new development will help tackle the challenge of microchip storage at a global level. 

Information technology and Telecom minister of India, Ashwini Vaishnaw, said, “Today’s historic decision will boost the development of the complete semiconductor ecosystem, ranging from design, fabrication, packaging, and testing.” The scheme is also a part of India’s ‘Atmanirbhar’ initiative to become self-reliant.

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Dipayan Mitra
Dipayan Mitra
Dipayan is a news savvy writer, who does not leave a single page of news paper unturned. He is also a professional vocalist who enjoys ghazals. Building a dog shelter is his forever dream.


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