The Government has decided to invite new applications for the establishment of Semiconductor Fabs and Display Fabs in India from 1 June 2023 under the Modified Semicon India programme. Applications will be received by the India Semiconductor Mission, the designated nodal agency entrusted with the responsibility to implement the Modified Semicon India program for semiconductor development and display manufacturing ecosystem in India.
Under the revised program, the tax incentive of 50% of the project cost is available to companies/consortia/joint ventures for setting up Semiconductor Fabs in India of any node (including mature nodes). Similarly, a tax incentive of 50% of project cost is available for setting up Display Fab of specific technologies in India.
The application window of “Modified scheme for making compound semiconductors / Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor ATMP/OSAT facilities in India” is open until December 2024. The application window of Design Linked is also open Incentive Scheme is open until December 2024. To date, 26 applications have been received under the DLI scheme and five applications have been approved.
The government had launched the Semicon India program in December 2021 with an outlay of ₹76,000 crore for semiconductor development and display manufacturing ecosystem in India. All applicants who have applied under the Semiconductor Fabs Scheme and the Display Fab Scheme (former schemes) are allowed to apply under the Amended Semiconductor Fabs Scheme and the modified for the creation of Display Fabs after incorporating appropriate changes in their proposals.