The Union Cabinet on Wednesday (21 September) cleared the changes to the production linked incentive (PLI) scheme for manufacturing of semiconductors, reports ET Now.
The PLI scheme for manufacturing of semiconductors was announced by the Centre in December last year with an outlay of Rs 76,000 crore.
The programme aims to provide attractive incentive support to companies/consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.
The development comes as India’s semiconductor component market is likely to reach $300 billion in cumulative revenues by 2026 as the government’s Production Linked Incentive (PLI) and ‘Make in India’ schemes will help domestic-sourcing of semiconductor components in the coming years.
In a win for the government’s chip PLI scheme, Vedanta and Foxconn earlier this month signed an agreement with Gujarat govt to set up a semiconductor and display fab in the state with an investment of over $19 billion.