Aiming to attract top companies from the semiconductor ecosystem, the Centre plans to focus more on silicon photonics and compound fabrication.
The Ministry of Electronics and Information Technology has announced that, under the second phase of the Indian Semiconductor Mission (ISM), financial incentives for semiconductor chip packaging units will be kept to a minimum.
MEITY plans to allocate a significant portion of its funds and incentives under the second phase to developing facilities for compound semiconductor production and silicon photonics. This investment aims to make it easier for the country to attract leading companies from the semiconductor industry.
This includes not only firms specialising in outsourced assembly and testing (OSAT) but also those involved in assembly, testing, marking, and packaging (ATMP) of semiconductor components.
A senior government official announced that all four projects from the first phase will start within the next 12 to 18 months. These projects include a chip fabrication unit in Dholera, Gujarat, and three chip packaging units—two in Sanand, Gujarat, and one in Morigaon, Assam. The total proposed investment in these units is Rs 1.48 trillion.
