BUDGET 2024-25 Semiconductors: FM chips in, hikes MeiTY allocation

New Delhi, July 23

In a bid to make cutting-edge technology available in India, the government has allocated money for developing and designing IT hardware, manufacturing semiconductors and providing incentives to the industry.

The allocation for the Ministry of Electronics and Information Technology (MeiTY) was hiked from Rs 16,549 crore last year to Rs 21,936 crore for this fiscal.

A sum of Rs 6,930 crore has been allotted in a scheme to fund design and produce semiconductors, silicon-based sensors, discrete semiconductors and semiconductor assembly, testing, marking and testing facilities in India. This includes Rs 551 crore for the Artificial Intelligence Mission and Rs 1,500 crore for setting by semiconductor fabrication units in India.

Modernising the 1980’ set-up, Semi-Conductor Laboratories (SCL), Mohali, has been allocated Rs 900 crore. This is part of Rs 10,000-crore modernisation plan for the SCL and a partner is being looked at. The SCL will be the R&D and training centre.

The government has also allocated Rs 6,200 crore as production-linked incentive for large-scale electronics manufacturing, including Rs 75 crore sop for the IT hardware, in the Budget.

In February, the Union Cabinet had okayed three proposals of private investment worth Rs 1,26,000 crore in the sector. It included three new plants — two in Gujarat and one in Assam — to address multiple layers of the semiconductor market. They will produce chips for various sectors, including defence, automobiles and telecommunications.

Meanwhile, the Singapore Semiconductor Industry Association today signed a strategic partnership agreement with the India Electronics & Semiconductor Association. “This will advance the collaboration between Singapore and India semiconductor ecosystems,” the Singapore Embassy in India posted on X.

Rs 900 cr for SCL modernisation

• Rs 6,200 crore production-linked incentive for large electronics manufacturing units
• Artificial Intelligence Mission gets allocation of Rs 551 crore
• Rs 900 crore for modernising the SCL located in Mohali
• This is part of Rs 10,000-crore modernisation SCL plan
• The SCL will be the R&D and training centre