It seems that the applicants approved will be given financial support of tens of crores, an allocation of Rs 200 crore
Prior to the announcement of Union Budget 2023-24, an exclusive report of Deccan Herald mentioned that there are expectations that a minimum sum of Rs 1200 Crores will be unleashed for the silicon-based semiconductor fabs and Rs 5,000 Crore for the total display and semiconductor manufacturing out of the Rs76,000 Crore PLI scheme unleashed in December 2021. But, the announcements from the budget did not meet the expectations, says the media.
The 104 page budget document stated that Rs 1,000 Crore has been unleashed for the silicon-based semiconductor fabs, Rs 200 crores for design linked incentives, Rs 1800 crores for other semiconductor fabs and chips packaging. The total amount allocated is Rs 3000 Crores. As per the report of Deccan Herald, the highest allocation of Rs 1,800 are for schemes to set up compound semiconductors/silicon photonics/sensors fab/discrete semiconductors fab and semiconductor assembly, testing, marking and packaging (ATMP)/outsourced semiconductor assembly and test (OSAT) facilities in the country.
The scheme’s application commenced on January 1 2022 and will end on January 1 2025. There are several MSMEs or mid-sized companies who have already applied for this scheme in addition to the five companies that were announced by the India Semiconductor Mission (ISM) in February 2022. In fact, there were several speculations of some hefty investments in the ATMP?OSAT space includes $300 million investments by Tata Electronics and $10 billion by US based Micron Technologies.
In fact, the DLI scheme is also open for three years and will close in Jan 2025. It seems that the applicants approved will be given financial support of tens of crores, an allocation of Rs 200 crore. Most importantly, no incentives have been allocated for the display fabs, which implies that neither ELEST or Vedanta has been approved by ISM yet.
