New Delhi: The government has amended the Production-Linked Incentive (PLI) scheme for semiconductor manufacturing, making it more attractive for global investors.
Until now, approval for applications involving a value of up to Rs 100 crore was issued by the MeITY Secretary, and those above Rs 100 crore were evaluated by the Union Minister for Electronics and IT.
The approval for setting up compound semiconductors and display fabs assembly and test units, under the Ministry of Electronics and IT (MeITY)’s production-linked incentive (PLI) scheme, will now be issued by the Union Cabinet, a government notification said on June 10.
The government hopes that these changes will make India a more attractive destination for semiconductor manufacturing, and help to reduce the country’s dependence on imports.
The PLI scheme was first announced in December 2021 with a total outlay of ₹76,000 crore (US$10 billion). It was tweaked in September last year to woo global investors with more attractive incentive support.
The government has said that it is confident that the amended PLI scheme will attract significant investments in semiconductor manufacturing in India. The government has also said that it is working on other measures to boost the semiconductor ecosystem in India, such as setting up a semiconductor design centre and a semiconductor testing facility.
The government’s efforts to boost semiconductor manufacturing in India are part of its broader plan to make India a global manufacturing hub. The government has set a target of increasing India’s manufacturing output to ₹5 trillion (US$65 billion) by 2025.
