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India’s Measures to Attract Investment in the Semiconductor and Display Fields

This report includes information on the following topics:
  • India
  • semiconductor
  • display
  • investment
  • government measures
  • electronics manufacturing
  • incentives
  • investment costs
  • semiconductor packaging factories
  • budget
  • semiconductor and display factories
  • research institutes
  • production-linked incentive (PLI)
  • large-scale electronics manufacturing
  • IT hardware
  • EMC 2.0
  • advanced chemistry cell (ACC)
  • Indian semiconductor market
  • India's Ministry of Electronics and Information Technology
  • wireless communications
  • automotive electronic devicesSKD (semi-knockdown)
  • SKD (semi-knocked down)
  • CKD (completely knocked down)
  • domestic added value
  • digital economy
  • semiconductor and display manufacturing ecosystem
  • semiconductor fabs
  • display fabs
  • Semiconductor Laboratory (SCL)
  • compound semiconductors
  • silicon photonics
  • sensors
  • MEMS
  • ATMP / OSAT Units
  • semiconductor design companies
  • Design Linked Incentive (DLI)
  • India Semiconductor Mission (ISM)
  • semiconductor factory establishment
  • implementation period
  • conditions
  • benefits
  • technical requirements
  • node size
  • wafer size
  • production capacity
  • minimum capital investment
  • minimum sales within three years
  • CMOS
  • Minister of Electronics and Information Technology
  • silicon photonics (SiPh)
  • assembly testing marking and packaging (ATMP)
  • outsourced semiconductor assembly and testing (OSAT)
  • packaging factory establishment
  • roadmap to advanced packaging technologies
  • licensing
  • ICs
  • chipsets
  • SoCs
  • IP cores
  • preferential treatment system
  • MSMEs

In December 2021, the Indian government announced measures to attract the global electronics industry with the aim of becoming economically independent in the electronics manufacturing field. Incentives offered will amount to a total of 760 billion INR. India will support up to 50% of investment costs in setting up semiconductor and display factories. In addition, measures support up to 15% of investment costs of compound semiconductor and semiconductor packaging factories.

India: Overview of Investment Attraction Measures for Semiconductor and Display Factory Establishment


・On December 15, 2021, the Government of India announced a comprehensive program on the development of a sustainable ecosystem of semiconductors and displays. - It aims to provide incentives to companies that produce and design semiconductors and displays, to give India technical leadership and financial independence in the field of electronics manufacturing. The total budget is 760 billion INR. - The contents are roughly divided into five programs related to the establishment of semiconductor / display factories and research institutes. See table below.


・The Indian government has approved an incentive of 553.92 billion INR. It consists of a production-linked incentive system (PLI scheme) for large-scale electronics manufacturing and IT hardware, a SPECS scheme (a scheme that provides financial support for investment in electronic parts and semiconductor factories and machinery), and an EMC 2.0 scheme. (a scheme to set up an electronic manufacturing cluster to financially support the supply chain and entrepreneurial ecosystem). In addition, we have approved the granting of PLI incentives of 980 billion INR in fields such as advanced chemistry cell (ACC), automobile parts, communication network products, solar power generation modules, and white goods. Together, these projects will provide 2.3 trillion INR for the manufacturing of electronics centered on semiconductors.
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