New Delhi: The Union cabinet is expected to be approving a scheme for semiconductor manufacturing worth Rs 25,000 cr in India. The announcement is awaited and will be declared after the cabinet meeting, which is underway.

Finance Minister Nirmala Sitharaman in May stated that the government of India is capturing investments as much as possible in India through the expansion of product-linked incentive (PLI ) schemes to include semiconductors and components.

FM Sithraman said India had relaxed various restrictions for the greater ease of carrying our business and taking in more investments. Sitharamn was conversating with a business leader on the theme of “Rising Investment opportunities Destinations of India.”

A year back in September, the Cabinet flagged off a PLI scheme for semiconductor manufacturing in India with a budget of Rs 76,000 cr. It supported uniform fiscal support of 50 per cent for semi-conductor project costs across technology and display manufacturing.

The PLI scheme also provided financial support for compound semiconductors, packaging and other semiconductor facilities at 50 per cent compared to 30 per cent.

Previously, incentives for semiconductor fabs were based upon looking at the size of the node-nodes from 45 nanometers to 65 nm were put forward an incentive of 30 per cent of the project cost, nodes between 28 nm and 45 nm have presented an offer for 40 per cent of support, and only nodes from 28 nm and below were offered 50 per cent fiscal support.

After the fresh changes, all fab plants were presented with the financial support of 50 per cent, irrespective of their node size