New applications for semiconductor fabs invited from June 1

Central Government has decided to reopen applications for setting up high-tech semiconductor and display fabs in India, after 15 months of closing the first round of applications. 

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The Central Government of India has recently announced the reopening of applications for setting up high-tech semiconductor and display fabs in the country. This decision comes after a gap of 15 months since the closure of the first round of applications.

The semiconductor scheme will reopen on 1st June 2023, under the Modified Semicon India Programme. The Centre will receive applications until December 2024.

Under the Modified Semicon India Programme, the government has increased the financial incentive of 50% of the project cost for companies, consortia, and joint ventures for setting up semiconductor fabs in India of any node (wafer size). Earlier the incentives under the scheme varied on the basis of wafer node size.

Mr. Rajeev Chandrasekhar, Minister of State for Electronics and IT said, “ISM @Semicon India is today announcing that it will start accepting n considering new applicants for fabs from new & existing applicants.” 

He further informed, ”First window for more expensive 28nm fabs was kept open for 45 days only in Jan2022 and received 3 applications that were evaluated by ISM n its Advisory group. The strategy now is also encouraging mature nodes of >40nm – current n new players may apply afresh in various nodes that they hv technology for. It is expected that some of the current applicants will reapply n new fresh investors will also apply.” 

Semiconductor is a principal component in the manufacturing of electronic devices, mobile phones, cars and electric vehicles. Taiwan alone accounts for more than 90% of the semiconductor manufacturing in the world, followed by the Netherlands, and South Korea.