Govt Invests $10 Billion in Semiconductor Industry to Boost Self-Reliance

ENA Sectors 2024-08-12 13:45:46 New Delhi, Aug 12 (KNN) In a bold move to strengthen its position in the global technology landscape, the Indian government has announced a massive USD 10 billion investment in its semiconductor and display manufacturing ecosystem. This initiative, part of the Semicon India Program, aims to reinforce the nation's vision of Aatmanirbhar Bharat (Self-Reliant India) and enhance resilience in global supply chains. The semiconductor market in India is projected to reach a staggering USD 110 billion by 2030, driven by the rapid adoption of cutting-edge technologies such as 5G, artificial intelligence, Internet of Things, and electric vehicles. Concurrently, the display market is expected to hit USD 15 billion by 2025, fuelled by increased semiconductor content per device and rising demand across various sectors. To attract significant investments and foster a sustainable industry environment, the program offers substantial incentives. Semiconductor and display fabrication facilities will receive a 50 per cent incentive on project costs across various technology nodes. Investors in compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities will benefit from 50 per cent support on capital expenditures. The initiative also aims to nurture domestic semiconductor design companies, startups, and MSMEs by offering up to 50 per cent reimbursement on eligible expenditures and a deployment-linked incentive of 4-6 per cent of net sales turnover over five years. This support extends to design infrastructure, including access to prototyping and post-silicon validation facilities. Recognising the importance of a skilled workforce, the government plans to develop 85,000 semiconductor engineers through a comprehensive training program. A specialised institution will be established to drive research, development, and talent cultivation in the sector. This strategic investment is expected to have far-reaching implications for India's electronics manufacturing ecosystem and its influence on global supply chains. As semiconductors are fundamental to modern electronic devices, from smartphones to industrial automation systems, India's growing semiconductor market is poised to play a crucial role in shaping the future of global electronics. (KNN Bureau) 38939 https://knnindia.co.in/news/newsdetails/sectors/govt-invests-10-billion-in-semiconductor-industry-to-boost-self-reliance 2024-08-12 13:45:46 knnindia.co.in Govt Invests $10 Billion in Semiconductor Industry to Boost Self-Reliance