India plans Rs 76,000 cr scheme to lure semi-conductor firms

The centre is planning to unveil incentives worth Rs 76,000 crore for setting up of over 20 semi-conductor design, components manufacturing and display fabrication units over the next six years, The Economic Times reported citing government officials.

The move is reportedly a bid to make India a hub for electronics.

"Through various PLI (production linked incentive) schemes, the Centre has tried to broaden the scope of manufacturing and export from India while the semi-conductor policy will help deepen India's manufacturing base," a senior government official told the publication.

Semi-conductors help in the functioning of a wide range of products, from television sets to cars.

One to two fabrication units are for displays and about 10 units each for designing and manufacturing components, officials reportedly said. The scheme may reach Cabinet by next week for approval and later ministry of electronics and IT may invite applications, according to the publication.

In the wake of the Covid-19 pandemic, the work from home mandates resulted in a massive surge in demand for computers and laptops, of which semi-conductor chips are key components. This metamorphosised into a chip shortage crisis that has now affected numerous industries.

Reacting to the Centre's move, Kanishka Chauhan, principal research analyst at Gartner, told the publication: "If the policy can lure some of the foundries (fabrication units) to our country, it would go a big way in making our country self-reliant."

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