Semiconductor and Display Manufacturing Ecosystem

Semiconductor and Display Manufacturing Ecosystem

Semiconductors and displays are the basis of modern electronics driving the next phase of digital transformation under Industry 4.0. Semiconductor and display manufacturing is highly complex and technology-intensive sectors involving substantial capital investments, high risk, long gestation and payback periods, and rapid technological change that requires significant and sustained investments.

In this purview, the Union Cabinet has approved the comprehensive program for the development of a sustainable semiconductor and display ecosystem in India on 15th Dec 2021, which aims to provide attractive incentive support to companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors/ silicon photonics/ sensors (including MEMS) fabs, semiconductor packaging (ATMP/ OSAT), and semiconductor design. The government of India has allocated Rs. 2,30,000 crore (USD 30 billion) to this program to position India as a global hub for electronics manufacturing, with semiconductors serving as the foundational building block.

This initiative shall pave the way for India’s technological leadership in strategic importance and economic self-reliance by an impetus to semiconductor and display manufacturing and facilitating capital support and technical collaborations. Under the design-linked incentive program, semiconductor designers would be given the opportunity to start their start-ups, with the government covering half of the costs.

Significance of the program:

  • Trusted sources of semiconductors and displays hold strategic importance and are key to critical information infrastructure security in the current geopolitical scenario.
  • It will also create highly skilled job opportunities to harness the country’s demographic dividend.
  • The development of the semiconductor and display ecosystems will exponentially impact different sectors of the economy with increased integration into the global value chain.
  • By offering a globally competitive incentive package to semiconductor and display manufacturing and design companies, the initiative will lead to a new era in electronics manufacturing.
  • The scheme would pave India’s technological leadership in strategic importance and economic self-reliance.

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