Government to offer up to 50% of the project cost to companies setting up chip plants. Bengaluru News – Times of India

BENGALURU: After announcing Rs 76,000 crore incentive scheme for semiconductors, the government has issued detailed guidelines regarding the same.
The government will provide up to 50 percent of the project cost to manufacturers setting up a facility to make chips up to 28 nm (nanometer), up to 40 percent of the cost of chips above 28 nm and up to 45 nm, and up to a maximum of 45 nm and up to 65 nm. 30 percent off chips. nm is one billionth of a meter and in semiconductors, represents the lowest Distance Between transistors in a chip. Chips keep getting smaller and better as researchers look for ways to reduce the distance between transistors.
“The assistance under the scheme will be provided for six years. The tenure of the actual financial assistance outflow may be extended based on the approval of the Minister of Electronics and IT,” the document said. In case the financial assistance is provided in the form of equity, the Government’s share shall not exceed 49 per cent of the total project equity. The scheme will be implemented through a nodal agency called Bharat Semiconductor Mission,
Applicants will have to make a minimum capital investment of Rs 20,000 crore. And applicants should have a minimum revenue of Rs 7,500 crore (including group companies) in electronics system design and manufacturing in any of the three financial years preceding the year of submission.
The document states that domestic electronics manufacturing has grown significantly over the years and continues to move from semi-knock down (s kd) completely knocked down (CKD) construction phase. “However, the domestic value addition is estimated to be in the range of 10 per cent – ​​30 per cent only, and so far the increase in manufacturing has been mainly due to final assembly using imported components, sub-assemblies/parts etc. This country This is due to the lack of a robust semiconductor manufacturing ecosystem.”

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