Semiconductor industry gets a major push in interim Union Budget

In the interim Budget, the Finance Minister has increased the allocation for a scheme to support semiconductor and display manufacturing by 130 percent to Rs 6,903 crore. The revised estimate of expenditure for the ‘Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India’ in FY24 is Rs 1,503 crore.

Under the programme, fiscal incentive of 50 percent of the project cost is available to companies/consortia/ joint ventures for setting up of semiconductor fabs in India of any node size (including mature nodes). Similarly, a fiscal incentive of 50 percent of the project cost is available for setting up of display fabs of specified technologies in India.

The application window for the scheme is open till December 2024. Application window of Design Linked Incentive Scheme is also open till December 2024. Till date 26 applications have been received under DLI Scheme and five applications have been granted approval.

For details on scheme, visit, https://www.meity.gov.in/esdm/Semiconductors-and-Display-Fab-Ecosystem

CT Bureau