The government will now provide 50% fiscal support to those making chips for industries such as automobiles and electric vehicles, telecom, computers, IoT devices, and servers. Many of these were previously getting support, ranging between 30% and 50%. The new package now also promises the 50% support to those engaged in semiconductor packaging and verification work, a critical job in the semiconductor manufacturing chain.
MoS IT and electronics minister Rajeev Chandrasekhar said that while previously, the incentives were highest for the top-notch silicon fabs used for high-tech chips required for mobile devices and high compute, the government wants to attract players across the ecosystem.
The minister said that the government is in talks with a variety of chipmakers looking to make investments across the production eco-system, but refused to name any of the companies that were being engaged.