The government is going to give people another chance to apply for its Rs 76,000 crore plan to make computer chips. The three applications it got last year had problems with starting their own factories, so they need to try again.
Chip Manufacturing Incentives Scheme Applications Open Again
The government had a first opportunity for organizations to apply to the scheme in January 2022, and it lasted for 45 days.
Now, they are going to open a new opportunity starting on June 1, which will be available until December 2024.
To avail the benefits of Chip Manufacturing Incentives under India Semiconductor Mission (ISM), you will need to file application online under Modified Scheme for setting up of Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor ATMP/OSAT facilities in India.
Production-Linked Incentives to Attract Electronics Manufacturers
The government of India approved a $10 billion incentive plan.
The product linked incentive plan aims to attract chip and display industries to the country, with the goal of making India a major hub for electronics manufacturing.
The plan is also aimed at reducing reliance on supplies from China, with which India has tense relations. Thus, making it mandatory for importers to have CHIMS Registration.
Learn about it at: Know all about the new CHIMS Registration in India or consult a professional CA from our team:
Know about Semicon India Programme
In December 2021, the government initiated the Semicon India Programme, allocating Rs 76,000 crore to foster the growth of the semiconductor and display manufacturing ecosystem in the country.
However, in response to feedback from the industry, the scheme underwent modifications in September 2022 to enhance its competitiveness.
As part of the revised scheme, the incentives outlined in the semiconductor policy were adjusted to encompass 50 percent of all semiconductor technology nodes.
Recently, Ashwani Vaishnaw, the Minister of IT & Electronics, embarked on a three-day visit to the United States to meet with key semiconductor companies such as Intel, GlobalFoundries, and Micron.
The purpose of the visit was to establish trust and reaffirm the government’s commitment to developing a robust semiconductor ecosystem, a departure from past attempts.
As a result, India & US signed MoU on semiconductor.
Government Offers Second Chance to Set Up Semiconductor and Display Fabs
According to the ministry, all individuals or entities who previously submitted applications for establishing Semiconductor Fabs or Display Fabs under the earlier schemes are also eligible to submit their proposals under the Modified Scheme.
However, they must make necessary adjustments in their proposals to align with the modifications introduced in the updated scheme for setting up semiconductor fabs and display fabs.
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