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Gov. Seeks to change in PLI scheme for semiconductor manufacturing

  • 22-Sep-2022
PLI scheme for semiconductor manufacturing

Ministry of electronics and IT launched the scheme of (PLI) production-linked incentive on 15.12.2021 with the Semicon India Programme with an outlay of INR 76,000 crore. The first round of applications was invited till 15.02.222 to establish the Semiconductor and Display Fabs.  


As the government of India has announced the PLI schemes for 14 sectors, including white goods, textiles, and auto components. 


The union government also allows certain changes in the scheme of PLI for semiconductor manufacturing. In order to strengthen electronic manufacturing and the huge development of a robust and sustainable Semiconductor and Display ecosystem in the country. 


Aim of the scheme - The scheme of PLI aims to provide effective incentive support to companies or consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Silicon Photonics, Sensors Fabs also include MEMS, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.  


A Memorandum of Understanding (MoU) has been signed by a joint venture company of Anil Agarwal’s Vedanta Group and Hon Hai Technology Group (Taiwan's Foxconn) with the Gujarat government to infuse Rs 1,54,000 crore to set up India’s first semiconductor plant in the state on  14th September.  

The report of India Electronics & Semiconductor Association (IESA) says, “India's semiconductor component market is growing and about to reach $300 billion in cumulative revenues by 2026, as 'Make in India' and PLI schemes will boost local sourcing of semi-components in the coming years”. 


Under the new programme of this scheme, stable financial support of 50 percent of project cost shall be provided to all compound semiconductors /silicon photonics/sensors / discrete semiconductors fabs.  


Union Minister Anurag Thakur said that the changes will uplift the semiconductor scheme, as well as generate job opportunities. 


As a consequence of the scheme, India will be self-reliant in semiconductors production, considering the growing demand for them across the globe, and can own the acute shortage. 

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