Cabinet Approves Scheme To Boost Semiconductor Manufacturing

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17 December 2021 Current Affairs:The Union Cabinet approved a Rs 76,000 crore scheme to increase semiconductor and display production in India on 15, December.


  • This plan was approved in order to promote India as a worldwide hub for high-tech manufacturing and to attract multinational chip manufacturers.
  • It would also boost India’s goal to become self-sufficient in electronics production by attracting significant investment.
  • This initiative will result in the creation of 35,000 specialized jobs and one lakh indirect jobs.
  • This is crucial because, in the current geopolitical environment, reliable suppliers of semiconductors and displays are critical. 
  • These are crucial components of critical information infrastructure security. 
  • Furthermore, this strategy was approved at a time when the globe is experiencing a major shortage of semiconductors, a critical component of automobiles and electrical devices. 


  • Companies working in silicon semiconductor fabs, compound semiconductor fabs, display fabs, sensors fabs, silicon photonics, semiconductor packaging, and semiconductor design will benefit from the scheme. 
  • The government expects roughly Rs 1.7 lakh crore in investments and 1.35 lakh employment in the next four years as a result of the implementation of this scheme.
  • The government is expected to build at least two greenfield semiconductor fabs, two display fabs, and 15 units of Compound Semiconductors & Semiconductor Packaging under the semiconductor strategy.

DLI (Design Linked Incentive) Program

  • The government will assist 100 domestic semiconductor, systems & IP cores, design for Integrated Circuits (ICs), System on Chips (SoCs), Chipsets, and semiconductor linked design under the Design Linked Incentive (DLI) scheme. 
  • This program will provide a financial reward of up to 50% of eligible expenses.

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