GoI plans semiconductor incentive policy amid shortage

New Delhi, 27 Oct (KNN) The Government of India is working on a semiconductor design-linked incentive policy as the crunch of chips has jolted the global supply chain.

It would focus on promoting domestic manufacturing and bring international companies to India.

According to official sources the scheme envisions to offer financial and infrastructure assistance to MSMEs throughout various stages.

It also mentions that under the scheme additional incentive shall be availed on their net sales turnover after the production and selling of chips in market is done.

This scheme would not only empower MSMEs and startups but give India a much needed push for its aspiration of being self-reliant.

As per IBEF report, the Indian semiconductor industry offers high growth potential areas as the industries which source semiconductors as inputs are themselves witnessing high demand.

The end-use industries such as mobile devices, telecommunication equipment, information technology, office automation (IT & OA), industrial machinery, automobiles and several other industries have applications for computing in some form or other and thereby necessarily have growing demand for semiconductors.