Cabinet to Review Semiconductor Scheme Applications from Tower Semiconductor, Tata Group, and Foxconn-HCL JV

29 Feb 2024 , 02:22 PM

The Cabinet is set to review applications for the semiconductor scheme on February 29, potentially reshaping semiconductor manufacturing in India. Tower Semiconductor, Tata Group, and the Foxconn-HCL joint venture are among the notable entities with proposals to be considered.

Tower Semiconductor seeks to establish India’s first fabrication facility under the Semiconductor Production Linked Incentive (PLI) scheme, with expected investments of $9-10 billion.

Tata Group applies for a semiconductor chip assembly, testing, monitoring, and packing (ATMP) facility, potentially in Assam, aiming to establish the state as a semiconductor hub.

Foxconn-HCL joint venture plans to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility with an investment of approximately $100 million.

This development follows the government’s announcement of a ₹76,000 Crore design-linked incentive program in 2021 to boost semiconductor production domestically. Under the scheme, the government will bear 50% of design expenditure and provide a 6% incentive on incremental sales, tapering to 4% over five years. The scheme aims to reduce India’s import dependency and foster indigenous innovation in the semiconductor sector.

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