Incentive policy for semiconductors

For boosting domestic manufacturing of chip sets and inflow of foreign investment, Indian government is planning to come up with a semiconductor design linked incentive policy, an official source said. Qualcomm, Intel, Mediatek, Infineon, and Texas Instruments have their center of research and development in the country, which contribute to the chip sets development.

Design-linked incentive policy for semiconductors

The source said, “The government is deliberating on a new semiconductor design-linked incentive scheme which envisages financial and infrastructure support for Indian MSMEs and startups right through the ideate stage to production stage. As and when these startups start producing and selling chips in the market, they shall also avail additional incentives under the scheme on their net sales turnover.”

Semiconductor design is main driver of revenues of electronic chip companies. Rajeeve Khushu, Chairman at IESA, said, “It is a great initiative which will leverage India’s strength to make an impact in the field of design of semiconductors. We can target to have 25 plus fabless companies in the next few years which will make a substantial impact in the global semiconductor market.”