80% funds allocated for semiconductor manufacturing scheme remain unused


Share post:

Indian government earmarked $10 billion, to boost semiconductor production through the production-linked incentive (PLI) scheme. However, about $8 billion, remains unused. Rajesh Singh, Secretary, Department for Promotion of Industry and Internal Trade and said that the department is encouraging Korean investors, who have already invested $5.6 billion in India since April 2000, to take advantage of this opportunity.

Semiconductor manufacturing scheme

PLI Scheme for Large Scale Electronics Manufacturing aims to enhance domestic production and attract investments by offering incentives. This initiative targets mobile phone manufacturing and specified electronic components, fostering growth in Assembly, Testing, Marking, and Packaging units. Companies receive a 4-6% incentive on incremental sales for five years.

Singh highlighted the government’s efforts to strengthen the manufacturing base, especially in the Semiconductor Mission, where over $10 billion is provided as an incentive to attract semiconductor manufacturers to set up operations in India. He said that there are considerable opportunities for Korean companies, as a substantial portion of the allocated funds for semiconductor production remains untapped.

In addition to semiconductor manufacturing, Singh pointed out upcoming opportunities for investments in battery storage solutions. The Indian government is opening bids for over 20 gigawatt hours of storage and mobility battery capacity, presenting another avenue for Korean companies to explore.

Singh expressed the ambition for India and Korea to boost bilateral trade to $50 billion by 2030 and acknowledged the suggestion to enhance the Comprehensive Economic Partnership Agreement (CEPA) to further strengthen the economic relationship between the two countries. This information was shared at the India-Korea Business Partnership Forum hosted by the Confederation of Indian Industry and the Korea International Trade Association.


Please enter your comment!
Please enter your name here

Related articles

DigiKey Adds Over 450 New Suppliers and 1.7 Million New Parts in 2023

DigiKey, a leading global commerce distributor offering the largest selection of technical components and automation products in stock...

Radiation-hardened ICs were onboard the Smart Lander for Investigating Moon

Renesas Electronics's radiation-hardened (rad-hard) ICs were onboard the Smart Lander for Investigating Moon (SLIM) spacecraft that successfully touched...

Automotive manufacturers to deliver high-definition video over low-cost cables and connectors

Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, today introduced the newest device in its Automotive...

World’s largest image sensor for Sphere’s Big Sky camera system

Sphere Entertainment Co. today revealed new details on its work with STMicroelectronics serving customers across the spectrum of...