In a strategic move to bolster the growth of semiconductor and electronic manufacturing in India, the Union Government has announced a revamped incentive scheme amounting to Rs 10,000 crore. As reported exclusively by the Economic Times, this updated initiative is expected to be an extended version of the existing Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), slated for launch at the commencement of the upcoming financial year.
Government sources indicate a departure from the current reimbursement procedure, with the revised scheme leaning towards an allocation of funds on a “pari-passu” basis. In fiscal terms, this implies equal treatment for all parties involved in a financial contract. S Krishnan, Secretary of the Ministry of Electronics and IT (Meity), recently revealed ongoing efforts to introduce another iteration of the electronic components scheme, SPECS.
During the CII Electronic Summit, the Murugappa Group and HCL Group, headquartered in Tamil Nadu, expressed interest in venturing into the assembly, testing, marking, and packaging (ATMP) sector. An unnamed government official, as reported by ET, stated that several ancillary industries and component makers are eager to establish new factories in India to support these ATMP units, seeking assistance from the Union Government.
Following Micron Technology’s announcement of setting up its ATMP unit in Gujarat’s Sanand region, numerous ancillary companies are eyeing the establishment of allied units in the vicinity. Reports suggest their intention to acquire new land adjacent to the Micron plant. Experts highlight the crucial role played by ancillary units in proximity to new chip fabrication factories.
Sources reveal that an aggregation of Rs 3,200-3,300 crore for the scheme is nearing completion. In the revised plan, the government aims to significantly increase this amount, potentially doubling or tripling the current funding.
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