Circular

SCHEMES FOR PROMOTION OF SEMICONDUCTOR DESIGN AND MANUFACTURING

Circular  |  Date: 22-12-2021  |  ELCINA  | 

22nd December, 2021

To: ELCINA Members

Dear Sir / Madam,

Government of India has issued Gazette Notifications regarding "Setting up Elemental, Compound Semiconductor and Display fabrication and ATMP & OSAT facilities in the country". Government has also announced a policy to incentivize and encourage Design infrastructure across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores. The objective is to strengthen the electronics manufacturing ecosystem in India with greater value addition. This is in line with the National Policy on Electronics 2019 (NPE 2019) to make India a global hub for Electronics System Design and Manufacturing (ESDM) and enable the industry to compete globally.

Salient Features:

  • The financial support offered includes up to 50% of the project cost.
  • The fiscal support will be provided for a period of six years to the eligible units.
  • The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.
  • The application window starts from January 1, 2022 and is open until the next 45 days.
  • Government will offer infrastructure support through "Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme for development of infrastructure / Common Facility Centre.
  • The semiconductor fabs set up in India will be supported through purchase preference in procurement of electronic products by the Government under PPE-MII Order 2017.
  • Additionally, up to 2.5% of the outlay of the scheme shall be earmarked for meeting the research and development (R&D), skill development and training requirements for the sector.

Members may download the Policy Notifications from the hyperlinks provided below:

We believe the scheme guidelines for the above mentioned scheme notifications will be announced at an early date. Members are requested to kindly share their comments/inputs on these policies at ashish@elcina.com .