Modifications in Programme for Development of Semiconductors

On 21^st September, 2022, the Union Cabinet approved modifications in the scheme for development of the semiconductor and display manufacturing ecosystem in India. The approval was accorded to make India’s $10 billion chip-making initiative more attractive to investors.

Significance: The global semiconductor industry is currently valued at $500-$600 billion and caters to the global electronics industry currently valued at about $3 trillion.

• The new changes are expected to harmonise government incentives for all technology nodes of semiconductors.
• The programme has attracted many global semiconductor players for setting up fabs in India. The modified programme will expedite investments in semiconductor and display manufacturing in India.