The Cabinet has approved the Rs 76,000 crore incentive scheme for semiconductors. Under this scheme, India will set up over 20 semiconductor design, components manufacturing and display fabrication units in the next six years. This is part of the Modi government’s plan to make the country a hub for electronics. The approval comes after the government showed interest from companies to this effect. The Ministry of Electronics & IT (MeitY) will now work out the details and invite applications.

As part of the scheme, the centre will also convince startups to design and make semiconductors. The plan is to train 85,000 semiconductor engineers to make it a complete C to S (chips to startups) ecosystem. He also elaborated on a new design linked incentive (DLI), of which the government will pay 50 per cent of the cost. It is likely to have substantial transformative power, and the entire programme will generate 35,000 high-quality jobs and indirect employment for one lakh people, the centre added.