The Union Cabinet approved a policy incentive of Rs 76,000 crore to boost semiconductor and display manufacturing, to make India a global hub in high-technology manufacturing.
The announcement comes at a time when there is a worldwide shortage of electronic chips and many semiconductor companies are ramping up their capacity.
Telecom and Information Technology Minister Ashwini Vaishnav said the decision will help in the design, manufacturing, packing and testing of microchips and develop an entire ecosystem.
Giving details of the plan, he said Rs 76,000 crore program has been approved for the development of semiconductor and display manufacturing ecosystem.
“We expect an investment of about Rs 1.70 lakh crore in the next four years,” he told reporters after the cabinet meeting. Some investments are already proposed. We expect projects for semiconductors in the next 3-4 months.
“In the medium term, four large semiconductor fabrication plants will be set up in two to four years,” Vaishnav said.
The Tata group has already expressed its intention to foray into semiconductor manufacturing. Sources told PTI that a firm of the Vedanta Group may also set up a semiconductor manufacturing plant in India.
According to sources in the Ministry of Electronics and IT, two large electronics chip companies and two display manufacturing units, each with an investment of Rs 30,000-50,000 crore, are expected to be set up in the next four years.
Besides, around 20 companies, including chip packaging firms and compound semiconductor companies, can start operations in three years with an investment of Rs 3,000-5,000 crore.
Vaishnav said that the government expects a total of 100 companies to take advantage of the scheme in the next four years.
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