Govt to offer sops for fabrication facilities

Govt to offer sops for fabrication facilities

The government, on Friday, said it will provide incentives to companies for setting up semiconductor wafer fabrication facilities.

Discussions are underway with various companies on the issue and the government is open to providing incentives to help them in setting up electronic chip making plants, said Ajay Kumar, Joint Secretary, Department of IT.

“You tell us what are the kinds of incentives you require to set up a fab in India,” Kumar said on the sidelines of a PHD Chamber event.

Semiconductor wafer fabrication plants are used for manufacturing electronic chips, which are at the heart of the communication gadgets and electrical devices.

“A high level empowered committee has been set up with a mandate to identify technology and investors,” he added.

Estimates show that India’s demand for electronics products will be $400 billion by 2020. At the current rate of growth, the production of electronics hardware may grow to $104 billion by 2020.