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EXCLUSIVE: Cabinet set to approve semiconductor manufacturing policy

EXCLUSIVE: Cabinet set to approve semiconductor manufacturing policy

The union cabinet is likely to approve a Rs 76,000 crore incentive scheme for semiconductor manufacturing at its meeting today.

Chetan Bhutani
Chetan Bhutani
  • Updated Dec 15, 2021 12:23 PM IST
EXCLUSIVE: Cabinet set to approve semiconductor manufacturing policySimilar incentives for assembly, testing, packaging units and chip design have also proposed.

The union cabinet is likely to approve a Rs 76,000 crore incentive scheme for semiconductor manufacturing at its meeting today.

Sources aware of the development said the government proposes to provide multiple incentives to set up for the development of a semiconductor manufacturing ecosystem in India.

The incentives include 25 per cent subsidy on capital expenditure for establishing semiconductor wafer fabrication units in India.

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Similar incentives for assembly, testing, packaging units and chip design have also proposed.

Sources also said the semiconductor policy will deepen India's base as a manufacturing hub for semiconductors.

Post cabinet approval, the Ministry of Electronics and Information Technology (MEITY) will notify the final contours of the schemes and invite companies to invest.

From cars to laptops, TV's, washing machines- all use semiconductors. The ongoing global semiconductor shortage has led to shortages across industries, including smartphones, personal computers, game consoles, automobiles and medical devices.

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ABOUT THE AUTHOR

Chetan Bhutani
Chetan Bhutani

Chetan Bhutani is a New Delhi-based economic policy journalist with ten years of experience in reporting and breaking stories about economic policy pertaining to India's infrastructure and financial sector, including highways, finance, railways, shipping, telecom, petroleum, and natural gas and currently works as an Associate Editor for Business Today TV. He is a journalist who works across multiple platforms and languages and offers in-depth coverage of the auto industry, regulations, new products, and reviews. Also, he has extensively reported about the actions taken by investigative authorities in relation to corporate and bank frauds as well as significant insolvency cases. Bhutani keeps a tight eye on all aspects of the government's public policies, from their creation to their implementation. In addition to his job, Chetan enjoys scheduling official appointments, travelling, going on road trips, playing cricket, and squash. Also, he is passionate about addressing climate change and road safety. He is a public policy enthusiast and has a master's degree in Public Administration.

Published on: Dec 15, 2021 12:22 PM IST