The centre is planning to give incentives of Rs 76,000 crore to set up over 20 semiconductor companies, components manufacturing and display fabrication units in the next six years to make India an electronics market. “Through different Production Linked Incentive (PLI) schemes, the government is trying to widen the scope of manufacturing and export from India while the semiconductor policy will help India’s manufacturing base,” a senior government official said.

The centre’s target includes 1 to 2 fab units for displays and ten units for designing and manufacturing parts. Semiconductors are used to make a broad range of products starting from automobiles to handsets. The scheme will be presented to the cabinet by next week for approval. After that, the ministry of electronics & IT (MeitY) will work on the fine details and invite applications.

“The world has been reeling under the shortage of semiconductor chips which affects production targets in almost all industries. From cars to TVs, laptops, earbuds, and even washing machines use semiconductors. The policy is coming at the right time and the right place. If the policy can attract some of the fabrication units to our country,” said Kanishka Chauhan, principal research analyst at Gartner.