The government is hoping that by standardizing the incentives, the scheme will draw in more investments & new apps for the semiconductors policy.
Rajeev Chandrasekhar said, “We are discovering that the Indian market, and indeed on an ongoing basis, the trailing edge nodes, which is 65 nanometer (nm) and above, also has a huge potential in India.“
After approving the ‘Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India‘, after nine months the government has standardized subsidies for the silicon fabrication industry. This change will provide 50 percent rewards for semiconductor fabs throughout the technological nodes, display fabs, packaging, and much more, clearing up any confusion about varying amounts of rewards for different types & portions of the semiconductor ecosystem. Government officials have responded to industry concerns.
“We are discovering that the Indian market, and indeed on an ongoing basis, the trailing edge nodes, which is 65 nanometer (nm) and above, also has a huge potential in India. So, therefore, there will be no restriction on the silicon fabs on the node in terms of willingness to invest in this incentive,” says the Ministry of Electronics & Information, Union Minister of State, Rajeev Chandrasekhar.
The buzzing term in this semiconductor space is about 7nm, 5nm, 3nm over the last few years, and 2nm in the near future. These cutting-edge nodes, as they’re sometimes called, are what fuel the most amazing gadgets, cellphones, laptops, servers, and cloud-based supercomputers. Trailing edge nodes, often known as legacy nodes, are used across all other electronic devices, from washing machines to fans. It’s interesting to note that the need for trailing edge nodes has remained steady in light of the widespread introduction of digitalization, IoT, and smart appliances. However, TSMC, Intel, and Samsung, three of the most significant fab manufacturers, are reportedly eager to invest in older technology nodes.
Even the Indian government’s basic goal, when launching the plan in December 2021, was to select investments in cutting-edge nodes. However, the disparity in incentive slab was a worry for several manufacturers who were considering trailing edge nodes.
The minister adds, “We have also come to the conclusion that the Indian market is as lucrative – 50 to 55% of it is trailing edge nodes. This is especially in automotive, power, telecom, low-end desktops, laptops, and in all of the other categories, which do not really use 7nm or 28nm type of semiconductors. We don’t want to lose that in the process. Even to those, we want to give 50% support.”
The government is hoping that by standardizing the incentives, the program will draw in additional investment & new apps for the semiconductor policy.
