The Union Cabinet has approved modifications in the Programme for development of semiconductors and display manufacturing ecosystem in India.


What are the new benefits?

  • Fiscal support of 50% of Project Cost on pari-passu basis for all technology nodes under Scheme for Setting up of Semiconductor Fabs in India.
  • Fiscal support of 50% of Project Cost on pari-passu basis under Scheme for Setting up of Display Fabs.
  • Fiscal support of 50% of Capital Expenditure on pari-passu basis under Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP /OSAT facilities in India. Additionally, target technologies under the Scheme will include Discrete Semiconductor Fabs.



  • The program will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.
  • Semiconductors and display manufacturing is very complex and technology-intensive sector involving huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology, which require significant and sustained investments. The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.
  • The programme aims to provide attractive incentive support to companies/ consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors/ Silicon Photonics/ Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP/ OSAT), Semiconductor Design.



  • The programme has attracted many global semiconductor players for setting up fabs in India. The modified programme, will expedite investments in semiconductor and display manufacturing in India.
  • The technology nodes of 45nm and above have high demand which is inter-alia driven by Automotive, Power and Telecom applications. Moreover, this segment constitutes around 50% of the total semiconductor market.