Union Cabinet approves Rs 76,000-crore PLI scheme for semiconductor manufacturing in India

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

New Delhi: I&B Minister Anurag Thakur on Wednesday (December 15) announced that the Union Cabinet has approved the production linked incentive (PLI) scheme for semiconductor and display board production in the country. 

The minister also said that the scheme envisages investment of Rs 76,000 crore in semiconductor production over the next 5-6 years. The plan will aim to make India a manufacturing hub for semiconductors. 

Currently, the world is faced with a semiconductor shortage, leading to a delay in the launch of new vehicles. The crunch is also forcing automakers to delay the deliveries of the current bookings. 

"The scheme will include provision for 25 per cent incentives on capital expenditure for establishing unit of Compound Semiconductor Wafer Fabrication (Fab), assembly, testing, and packaging facility," a CNBC Awaaz report said. Also Read:  OPPO's first foldable flagship smartphone OPPO Find N launched --Check features

Meanwhile, Telecom and IT Minister Ashwini Vaishnaw said the decision will help design, fabrication, packing and testing of the microchips and develop a complete ecosystem. Also Read: Nykaa introduces L'Oreal's 'ModiFace' virtual try-on tech to enhance beauty shopping experience