About 10 days ago, the Indian government invited companies to set up semiconductor chip factories in the country with an incentive budget of INR 76,000 crore (US$ 10 billion). Now the government has reportedly issued detailed guidelines around it.
Speaking of which, the government will offer up to 50% of the project cost to manufacturers looking to establish a facility to manufacture chips up to 28 nm (nanometer), up to 40% of the cost for chips above 28 nm and up to 45 nm, and up to 30% for chips above 45 nm and up to 65 nm. In layman terms, the nanometer indicates the distance between the transistors in a chip.
Companies interested in availing of this offer will have to make a minimum investment of INR 20,000 crore (US$ 2.6 billion) and must have a revenue of at least INR 7,600 crore (US$ 1 billion). Under this scheme, the companies will receive government support for up to 6 years. However, the tenure of the financial support could be extended if approved by the electronics and IT ministry. Also, in case the financial support is offered through equity, the government share will not exceed 49% of the total project equity.
Source: ETAuto
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