Semiconductor and Display Manufacturing

Semicon India Program

The Semicon India Program with an incentive outlay of $10 Bn was launched with the vision to develop a sustainable semiconductor and display ecosystem in the country. This program will establish India as global hub for semiconductor and display manufacturing, promote self-reliance, strengthen resilience in global supply chains, and pave the way for India’s technological leadership in the industry.

Key Highlights include:

50% incentive support on Project Cost for Semiconductor and Display Fabs across technlology nodes
50% incentive support on Capital Expenditure for Compound Semiconductor and OSAT / ATMP facilities
Design Linked Incentive for domestic semiconductor design companies
India Semiconductor Mission - specialized institution setup to drive the Semicon India Program
Talent development program for 85,000 semiconductor engineers

Discover Electronics Systems

$ Bn

Semiconductor market by 2030

$ Bn

Display market by 2025

$ Bn

Incentives under Semicon India Program

Sector Expert

Rohan Thomas Abraham

Let us know your Investment Query

Contact Now

Reasons to Invest

10% of global semiconductor market by 2030. Emerging technologies like EV, IoT, 5G etc. driving market growth

Globally competitive incentive support

World class R&D institutions for collaborative innovation and skilled workforce pipeline

How We Help Investors

Research Content Provider

Location Analysis

Policy Advisory/Representation

Stakeholders Meeting

Issue Resoution

Regulatory Clearance Facilitation

INVESTOR QUERY

FDI Norms

100% FDI is allowed under the automatic route.

100%

FDI Allowed under Automatic route

Favorable Government Policies

Modified Scheme for Setting up of Semiconductor Fabs in India

Objective: To attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.

Fiscal Support: 50% of Project Cost will be provided as incentives on pari-passu basis for all technology nodes to approved investors.

Additional support across demand aggregation, R&D, skill development, and training of the workforce will also be provided.

Eligibility Criteria can be found in the scheme notification mentioned below.

Notification for Modified Scheme for setting up of Semiconductor Fabs in India.

Application Portal.

Modified Scheme for Setting up of Display Fabs in India

Objective: To attract large investments for setting up display fabrication facilities in the country to strengthen the electronics manufacturing ecosystem.

Fiscal Support: 50% of Project Cost will be provided as incentives on pari-passu basis to approved investors.

Additional support across demand aggregation, R&D, skill development, and training of the workforce will also be provided.

Eligibility Criteria can be found in the scheme notification mentioned below.

Notification for Modified Scheme for setting up of Display Fabs in India.

Application Portal.

Modified Scheme for Setting up of Compound & Discrete Semiconductor Fabs & OSAT / ATMP facilities in India

Objective: To attract investments for setting up Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fabs/ Discrete Semiconductors Fabs and Semiconductor ATMP / OSAT facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted electronics value chain in the areas of application of these fabrication and packaging technologies.

Fiscal Support: 50% of Capital Expenditure will be provided as an incentive on pari-passu basis to approved applicants.

Additional support across demand aggregation, R&D, skill development, and training of the workforce will also be provided.

Eligibility Criteria can be found in the scheme notification mentioned below.

Notification for Modified Scheme for Setting up of Compound & Discrete Semiconductor Fabs & OSAT / ATMP facilities in India

Guidelines for Modified Scheme for Setting up of Compound & Discrete Semiconductor Fabs & OSAT / ATMP facilities in India

Application Portal

Design Linked Incentive (DLI) Scheme

Objectives:
1. Nurture and facilitate the growth of the domestic fabless design companies, startups and MSMEs
2. Achieve significant indigenization in semiconductor and electronic products and IPs
deployed in the country
3. Strengthen India's design infrastructure through incubators for semiconductor design and
facilitate access to startups and MSMEs

Incentive Support under the Scheme:
1. Product Design Linked Incentive: Reimbursement of upto 50% will be provided on eligible expenditure.
2. Deployment Linked Incentive of 6%-4% of net sales turnover over 5 years

Additional support for design infrastructure will be provided to startups & MSMEs across National EDA Grid, IP Core repository, Prototyping and Post Silicon Validation.

Eligibility Criteria can be found in the scheme notification mentioned below

Notification for Design Linked Incentive (DLI) Scheme.

Application Portal.

Industry Scenario

Semiconductor
Display

Semiconductors are the fundamental building blocks of electronic devices, used to power a vast array of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence system.

India’s semiconductor market is anticipated to grow to $64 Bn by 2026. Two-thirds of the semiconductor market size would be driven by India’s telecom stack and industrial applications.

Market segments driving growth will include mobile & wearables, information technology, industrial and consumer electronics.

With greater adoption of emerging technologies including 5G, AI, IoT, Electric Vehicles, the semiconductor content per device will increase manifold resulting in further growth in its manufacturing.

ASK OUR SECTOR EXPERT READ EXIM POLICY

Global Majors with India Presence

Value Chain Assessment

INVESTOR QUERY

Potential High Tech Clusters for Fabs

Value Chain Profiles

Semiconductor Design
Semiconductor Fabrication
Compound Semiconductors
OSAT / ATMP

Semiconductor design companies engage in product design and development of Integrated Circuits (IC), Chipsets, System on Chips (SoC), and Systems & IP Cores. With an exceptional talent pool of 20% of world’s semiconductor design engineers, India remains a highly attractive design destination with numerous global semiconductor majors already having design and R&D presence

Ask our sector expert