Cabinet approves big plan for semiconductor, display makers in India

The Union cabinet on Wednesday approved a budget of Rs 76,000 crore for a production linked incentive (PLI) scheme for semiconductor and display board production in the country. Union telecom and IT minister Ashwini Vaishnaw said the entire ecosystem starting with the design and manufacture of the semiconductor chips will be developed in India. He was addressing a press conference in New Delhi along with Anurag Thakur, Information and Broadcasting minister. This historic  decision will help develop the complete semiconductor ecosystem -- from the design of semiconductor chips to their fabrication, packing and testing -- in the country.  Thakur said the scheme envisages the investment of  Rs 76,000 crore in the semiconductor production over the next five-six years. The ambitious project is named Programme for Development of Semiconductors and Display Manufacturing Ecosystem. The cabinet decision comes at a time when automakers and tech companies are grappling with a global semiconductor shortage.

According to Reuters report, Israel's Tower Semiconductor, Apple's contract manufacturer Foxconn and a Singapore-based consortium have all shown interest in setting up semiconductor fabrication units in India, Vedanta Group was also keen to set up a display fabrication plant in India. Tata Group, one of India's biggest conglomerates, is also venturing into the business and is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain. The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.

The Cabinet also approved the Treaty on Mutual Legal Assistance in Criminal Matters between India and Poland with a view to enhance capability and effectiveness of both countries in investigation and prosecution of crimes, including crimes related to terrorism through mutual legal assistance.  The proposed Treaty will provide a broad legal framework for bilateral cooperation with Poland in investigation and prosecution of crime as well as in tracing, restrain and confiscation of proceeds and instruments of crime as well as the funds meant to finance terrorist acts. The Treaty will be instrumental in gaining better inputs and insights in the modus operandi of organized criminals and terrorists.  These in turn can be used to fine tune policy decisions in the field of internal security.