Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), etc. However, semiconductors, which are the backbone behind every electronic item that also plays an important role in the automobile industry, were not taken into consideration by the government for the unleashing of any schemes. After several rounds of heated discussions and pressure from the industry associations and experts, the Ministry of Electronics and Information Technology (MeitY) has finally unveiled the much-awaited incentive package of Rs 76,000 Crore ($10 billion) under the production-linked incentive (PLI) scheme to perk-up the manufacturing cluster of semiconductors and displays for which the government has already started receiving applications from review film Jan 1, 2022.

The schemes are already notified and uploaded on the government website. In order to make it successful, there is now a specialized India Semiconductor Mission (ISM), which is an independent business platform formed within the Digital India Corporation. It was begun to make India appear as an international hub for electronics design and manufacturing. The applicants beneath the display and semiconductor fab scheme can be negotiated by the ISM and also have the right to select the needed technology mix, applications, node generation, and capacity. In fact, the volume and structure of the financial assistance for the applicants selected will also be spearheaded by the ISM.

According to the government, financial assistance of 50 percent will be provided to set up the industry, which is for certain variants of silicon-based semiconductor fab. The fiscal support will be given for a period of six years from the date of approval. Now, for setting up display fabs, it was granted Rs 12,000 Crore for each FABs that will help magnetizing colossal investments in the making of TFT LCD or AMOLED-based display panels. The PLI scheme will also help in making compound semiconductors, silicon photonics, sensors, FABs, and semiconductor ATMP, OSAT facilities in the nation, while the approved units can grab financial support (capital expenditure) of 30 percent. Experts also highlighted that under this scheme, around fifteen clusters of semiconductor packaging and compound semiconductors will be formed. To make the semiconductor manufacturing dream a reality for the country, MeitY has also unleashed the Design Linked Incentive (DLI) Scheme that offers product deployment linked incentives of 4-6 percent on net sales for five years and an incentive of up to 50 percent of eligible expenditure.