‘Govt aid for semiconductor projects to continue’

Electronics and IT Secretary S. Krishnan detailed how the government plans to broaden benefits under the Design-Linked Incentive (DLI) scheme to support larger domestic firms and enhance grants at the Semicon India event. The Central and State incentives could cover up to 70% of the total cost for critical semiconductor production projects.

Krishnan described the support for these projects as unprecedented, approximately US $30 billion in incentives and benefits are currently in play. The central government contributes about 50% of a project's capital expenditure, while state governments add roughly 20%, combining to cover nearly 70% of project costs on a pari-passu basis, disbursed as the project progresses. He emphasised the importance of sectors such as semiconductor fabs, display fabs, and other critical components. Display manufacturing remains a key focus area for the next phase.

Currently, DLI is limited to startups and SMEs, but Krishnan shared plans to extend its scope to large domestic semiconductor design firms—enhancing both grants and access to risk capital.