Reasons to Invest

10% of global semiconductor market by 2030. Emerging technologies like EV, IoT, 5G etc. driving market growth
Globally competitive incentive support
World class R&D institutions for collaborative innovation and skilled workforce pipeline

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FDI Norms

100% FDI is allowed under the automatic route.
100%

FDI Allowed under Automatic route

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Favorable Government Policies

Fiscal support of upto 50% of Project Cost for Semiconductors and Display Fabs

The Scheme for Setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of up to 50% of project cost to investors on the basis of capital investment, technology utilized (node and wafer size) and installed capacity. Additional support across demand aggregation, R&D, skill development, and training of workforce will also be provided.

Scheme Notification for setting up of Semiconductor Fabs in India.

Guidelines of Scheme for setting up of Semiconductor Fabs in India.

Scheme Notification for setting up of Display Fabs in India.

Guidelines of Scheme for setting up of Display Fabs in India.

Fiscal support for Compound Semiconductors & OSAT / ATMP

The Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 30% of capital expenditure on the basis of investment and technology utilized. Additional support across demand aggregation, R&D, skill development, and training of workforce will also be provided.

Scheme Notification for setting up of Compound Semiconductors in India. 

Guidelines of Scheme for setting up of Compound Semiconductors in India. 

Application Portal for Compound Semiconductors. 

Design Linked Incentive (DLI) Scheme

The DLI scheme shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% - 4% on net sales for five years. Support will be provided to 100 domestic companies engaged in semiconductor design. The Government intends to nurture the growth of not less than 20 such companies to achieve a turnover of more than INR 1,500 Cr in the coming five years.

Scheme Notification for Design Linked Incentive. 

Guidelines of Design Linked Incentive . 

Application Portal for DLI. 

Industry Scenario

Semiconductors are the fundamental building blocks of electronic devices, 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 global semiconductor market was $440 Bn in 2020 and expected to reach $1 Tn by 2030.
Semiconductor industry can be broadly classified under three categories: Logic (42%), Memory (26%) and DAO (Discrete, Analog and Others - 32%)
With greater adoption of emerging technologies including 5G, AI, IoT, Electric Vehicles, the semiconductor content per device will stimulate further growth in its manufacturing.
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Potential High Tech Clusters for Fabs

Value Chain Profiles

Semiconductor design companies engage in product design and development of Integrated Circuits (IC), Chipsets, System on Chips (SoC), and Systems & IP Cores. With an exceptional talent pool of 20% of world’s semiconductor design engineers, India remains a highly attractive design destination for global semiconductor companies such as Qualcomm, Nvidea, AMD, Intel, Micron amongst others.
The total electronic design market in India is estimated to be $4.7 Bn in 2020 and growing at a CAGR of ~15.4%
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