The Cabinet decision to extend the production-linked incentive, or PLI, scheme to semiconductors with a budgeted incentive of Rs 76,000 crore over the next six years should encourage investment flows. While India has excellent semiconductor design houses, including many R&D units owned by global majors, the lack of fabrication capacity leaves a huge gap in the electronics value chain.
The scheme envisages support to outfits engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics and sensors fabs, semiconductor packaging, and semiconductor design. At the least, the PLI targets kick-starting two greenfield semiconductor fabs and two display fabs as