In Short:
The Indian government has started giving money to Micron Technology, a US-based company, as part of a scheme to support the semiconductor sector. The scheme offers financial help to companies setting up semiconductor and display fabs in India. Micron plans to invest $2.75 billion in Gujarat for chip packaging. Tata is also setting up semiconductor units in Assam and Gujarat with a total investment of Rs 1,18,000 crores.
Government initiates disbursement process for Micron Technology under PLI scheme
The Indian government has started the disbursement process for the US-based Micron Technology as a part of the production-linked incentive (PLI) scheme aimed at promoting the semiconductor sector. The Ministry of Electronics & IT (MeitY) Secretary, S Krishnan, mentioned that disbursal has begun for Micron and will soon start for other companies like Tata.
Overview of the PLI Scheme
In 2021, the government introduced a mega PLI scheme with an outlay of Rs 76,000 crore for the semiconductor and display fab ecosystem. The scheme was later modified in September 2022 to offer 50% uniform support across all technology nodes to attract significant investors.
The fiscal support is based on a pari-passu basis for the setup of semiconductor and display fabs and other categories like compound semiconductors. The assistance will be provided based on quarterly expenditures by the beneficiary companies.
Investments and Projects
In June 2023, Micron Technology committed to investing $2.75 billion in chip packaging for various industries at its facility in Gujarat’s Sanand. Tata group companies are also setting up semiconductor units in Gujarat and Assam.
Tata Semiconductor Assembly and Test (TSAT) is constructing a plant in Morigaon, Assam, while Tata Electronics Private Limited (TEPL) is driving the semiconductor fab project in Dholera, Gujarat, in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC). These initiatives aim to boost local manufacturing and attract investments to enhance India’s position in the global supply chain.
