About Semicon India Programme

• In order to widen and deepen electronic manufacturing and ensure development of a robust and sustainable Semiconductor and Display ecosystem in the country, the Government of India launched the Semicon India Programme in 2021.
• The initiative aimed at positioning India as a global hub for electronic system design and manufacturing. 
• Through the program’s scope, the government hopes to attract large global chip makers to make India their production base. India wants to achieve technological leadership in these areas of strategic importance – also key to the security of the country’s critical information infrastructure. 

Implementation

• India Semiconductor Mission (ISM) has been set up as a dedicated institution for the Semicon India Programme.
• ISM coordinates with the applicant companies who have also reached out to states to provide access to world class infrastructure. 

Modified Semicon India Programme

• The Modified Semicon India Programme, unveiled late last year, allows a wider range of fiscal incentives for more “nodes” (specific manufacturing processes that might be spread out over a chip’s production cycle).
• Under the modified program, companies, consortia, and joint ventures planning to set up semiconductor fabs in India, regardless of their stage of development are eligible for a fiscal incentive of 50 percent of the project cost. 
• Similarly, a fiscal incentive of 50 percent of the project cost is available for the establishment of display fabs utilizing specified technologies in India.

Why in News?

• With the objective to develop a vibrant semiconductor ecosystem, the Union Cabinet has approved the proposal of Kaynes Semicon Pvt Ltd to setup a semiconductor unit in Sanand, Gujarat.
• The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

https://pib.gov.in/PressReleasePage.aspx?PRID=2050859