Centre Announces Major Incentives for Chip Manufacturing

The Central government has officially announced the ‘Semicon 2.0’ scheme with an allocation of Rs 1.27 lakh crore to strengthen semiconductor and chip manufacturing in India. The government has also outlined the eligibility criteria and incentives available for industries under the scheme. Companies investing between Rs 50 crore and Rs 20,000 crore in chip manufacturing and assembly plants will be eligible for financial support ranging from 25% to 40%. The initiative aims to expand India’s domestic semiconductor ecosystem and position the country as a major global manufacturing hub.

The Semicon 2.0 scheme also offers major incentives for semiconductor design, research and development. The government has announced incentives covering up to 75% of eligible R&D expenditure and similar support for developing skilled semiconductor professionals. The scheme will also support domestic manufacturing of OLED, Micro LED and LCD technology displays. In addition, the government plans to focus on developing advanced 3 to 7 nanometre chips within the country for use in cutting-edge technology products.