Government expects new investment of $25 billion from its semiconductor policy

22 Sep 2022 , 08:40 AM

According to Reuters, the government’s intention to expand assistance for new semiconductor and display facilities anticipates significant investments.

Rajeev Chandrasekhar, the MoS for electronics and technology, was reported in the report as adding that the current investment forecast is to the tune of at least $25 billion.

The Cabinet on Wednesday authorized changes to the production-linked incentive (PLI) system for semiconductor manufacturing.

Recently, an allocation of Rs76,000 crore (about $10 billion) for the PLI plan sector was declared. The investment is intended to create a national electronics manufacturing ecosystem for semiconductor and display production.

By 2026, the semiconductor component market in India is expected to generate cumulative revenues of $300 billion, according to a report by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research.

According to the report, PLI and Make in India would probably increase local sourcing of semi-components in the near future.

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