Cabinet approves Rs 76,000-cr PLI scheme for semiconductor manufacturing

The Union Cabinet on Wednesday approved a production linked incentive (PLI) scheme for semiconductor and display board production in the country, I&B Minister Anurag Thakur said.

The scheme envisages investment of Rs 76,000 crore in semiconductor production over the next 5-6 years, he said.

Telecom and IT Minister Ashwini Vaishnaw said the decision will help design, fabrication, packing and testing of the microchips and develop a complete ecosystem. 

Commenting on the development, Avneet Singh Marwah, CEO at SPPL (Super Plastronics), India Licensee of Blaupunkt TV in India, said, "This is a welcome move by the GOI, today the world is struggling for an alternative manufacturing hub for raw materials. This will be a game-changer to create an ecosystem of manufacturing in India. This will encourage investments from all the big players, to make India Atmanirbhar Bharat. As of today, India is completely dependent on other countries, due to which we are facing huge supply constraints and price wars. We believe that this scheme from the govt is one the biggest supports have been given to the manufacturing sector. Now we are moving in phase from assembling to manufacture in India, there will more price stability in consumer electronics products.”

Jyoti Prakash Gadia, Managing Director, Resurgent India, said, "It is a very timely and significant step of the government to encash upon the big opportunity arising out of the current worldwide shortage of semiconductors and the projected demand for the same, looking to the growing digitalisation at the global level. India is best suited to emerge as a manufacturing hub for semiconductors and other such equipment has given the number of engineers graduating from our institutions and the kind of software infrastructure already created. Prompt seamless, implementation of the scheme over the next six years with a review for midcourse correction shall be an essential factor for the success of the scheme."

(With PTI inputs)