1. Objective
To build a self-reliant and globally competitive semiconductor manufacturing ecosystem and enabling its participation in the global electronics value chains.
SEMICON 2.0 - Building on the successful implementation of the first phase of the Semicon India Programme (Semicon 1.0), the Union Cabinet has approved the next phase of Semicon India Programme (Semicon 2.0) with a fiscal outlay of ₹ 1,27,500 crore to accelerate the development of a robust and resilient semiconductor ecosystem in India.
To build a self-reliant and globally competitive semiconductor manufacturing ecosystem and enabling its participation in the global electronics value chains.
The applicants are expected to "Own or possess licensed technologies for the proposed unit" , except for the Test and characterisation facility.
The eligible sub-verticals, their capital investment threshold and fiscal support from Government of India are listed below:
| S.N. | Eligible Sub-Verticals |
Minimum Capital Investment Threshold |
Minimum Revenue Threshold Including Group Companies in any of the three FYs preceding the year of application submission | Fiscal Support from Government of India |
|---|---|---|---|---|
| (a) | Setting up R&D facilities for semiconductor equipment. | ₹300 crore | ₹120 crore | 30% of Capital Expenditure on pari-passu basis. |
| (b) |
Setting up manufacturing facilities
for semiconductor grade Raw Materials
(including Back-end), such as, but not
limited to:
Wafer, Photo mask, Photoresists,
Substrate, chemicals, gases,
materials, glass for display fab etc.
|
₹50 crore | ₹20 crore | 30% of Capital Expenditure on pari-passu basis. |
| (c) | Semiconductor Test and characterization Facilities | ₹100 crore | ₹40 crore | 30% of Capital Expenditure on pari-passu basis. |
| (d) | Manufacturing and/or Assembly of Equipment/refurbish Equipment, Sub-Assemblies, Components for use in all semiconductor fabrication and packaging facilities. | ₹300 crore | ₹120 crore |
30% of Capital Expenditure
on pari-passu basis.
Production Linked Incentive
(PLI)
10% / 8% / 6% / 4% / 2%
of BoM value sourced from
domestic manufactures.
The PLI incentive will be
applicable for 5 years starting
from FY 2028-29 subject to an
overall ceiling of 50% of capex.
|
The duration of the projects to be supported under this scheme shall be determined on project-to-project basis, preferably up to 6 years.
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.