Semiconductor Fabs

Semiconductor Fab

The Scheme for setting up of Semiconductor Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to the approved applicants.

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  • Electronics permeates all sectors of the economy and the electronics industry has cross-cutting economic and strategic importance. Currently valued at around USD 2 Trillion (?150 lakh crore), the global electronics market is expected to grow significantly given the increasing penetration of emerging technologies including 5G, IoT, Artificial Intelligence, Robotics, Smart Mobility, Smart Manufacturing, etc.
  • Semiconductors are building blocks of electronic devices. Semiconductors are used to power a vast array of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence system.
  • The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and create an enabling environment for the industry to compete globally. One of the main strategies of NPE 2019 is to facilitate setting up of semiconductor wafer fabrication facilities and its eco-system for design and fabrication of chip components.
  • In case of fiscal support being provided as equity either in part or in full, Government of India’s share will not exceed 49% of total project equity.
  • The structure and quantum of the fiscal support will be negotiated by the India Semiconductor Mission with the applicants who are selected on the basis of technological and financial evaluation of their proposals.
  • Additional financial support, if any, offered by the State Government or any of its agencies or local bodies may also be availed.
  • Expenditure Finance Committee shall determine the structure and quantum of fiscal support to be provided under the scheme in consultation with Ministry of Electronics and Information Technology and the Nodal Agency.

Scheme Details


To attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.


Companies / Consortia / Joint Ventures proposing to set up a Silicon CMOS based Semiconductor Fab in India for manufacturing Logic / Memory / Digital ICs / Analog ICs / Mixed Signal ICs / SoCs

Tenure of the Scheme

Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.

Procedure to Apply

Submission of relevant information to register with ISM and submit application
Detailed Project Report
Application fee as per Scheme and Guidelines.
*Fee shall be inclusive of GST however the transaction charges are to be borne by the Applicant independently
The tenure of the fiscal support shall be for a period of 6 years