The Ministry of Electronics and Technology (MeiTY), on December 07, 2022, issued a Press release regarding introduction of following four new schemes for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS):
i. Modified Scheme for setting up of Semiconductor Fabs in India – The Scheme extends fiscal support of 50% of the project cost for setting up of Silicon CMOS-based Semiconductor Fab in India.
ii. Modified Scheme for setting up of Display Fabs in India- The scheme extends fiscal support of up to 50% of the Project Cost for setting up of Display Fabs in India.
iii. Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India – The scheme extends fiscal support of 50% of the Capital Expenditure.
iv. Design Linked Incentive (DLI) Scheme – The scheme provides a “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and a “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.
The incentive will be available to the approved projects under the scheme for the investment made within 5 years from the date of acknowledgment of the application subject to capital expenditure meeting the minimum threshold value and commencement of commercial production, and compliance to other terms and conditions stipulated in Scheme /Guidelines / Approval Letter.