After PLI's Success, "Bigger" Package For Semiconductor Manufacturing On Cards As Foreign Companies Show Interest: Report

After nearly exhausting the Rs 76,000 crore allocated for Production-Linked Incentive (PLI) scheme to promote semiconductor manufacturing, the Centre is planning for a "bigger" package to make up for the lost time.

According to Times of India, this amount will be more than Rs 76,000 crore package, that was launched in December 2021. The announcement is expected to be made when the government comes to power after the elections.

Cited sources say that the package will be rolled out on a priority basis and will be among the key agendas of the new government. This comes at a time when many new proposals are coming for the semiconductor sector.

Those proposals which are at an advanced stage, would require decisions from the Centre, including incentives. Currently, financial support up to 50 per cent of the project cost is given to display and chip fabricators.

Countries like the US and China have already revealed significantly larger packages for companies investing in semiconductors. To woo countries to come to India, India also needs to take an aggressive approach.

The government is currently encouraged by the success of the earlier package. Last month, Prime Minister Narendra Modi laid the foundation stone of the maiden fabrication facility at Dholera and two assembly units at Sanand and Morigaon.

The proposals that are under consideration now include one from Japan's Sharp for the country's first display fab unit with Rs 40,000 crore investment and the other from Israel's chipmaker Tower Semiconductors for Rs 90,000 crore investment.