Semiconductor companies want more subsidies

BS reports

Last month, the Union Cabinet gave in-principle approval to the policy, which included a combined 25 per cent subsidy and tax incentives on the capital expenditure in the first 10 years of a fabrication plant.

However, the subsidy component is now being examined by a Group of Ministers owing to the huge financial implications involved. The Centre has announced that the policy will be out before the budget.

“We are seeking one-time investment to support semiconductor manufacturing. We are urging the government to set aside Rs 10,000 crore for this purpose. Three years down the line, this sector will pay back Rs 40,000 crore through revenue and employment opportunities,” Khare contends.

He pitches for semiconductor manufacturing strongly based on three factors — the demand for electronic products in the country, the ecosystem and international market dynamics.