(MENAFN- KNN India)
New Delhi, Aug 3 (KNN)
The Indian government has initiated the disbursement process for US-based Micron technology under its Production-Linked Incentive (PLI) scheme, aimed at promoting the Semiconductor sector.
S Krishnan, Secretary, Ministry of Electronics & IT (MeitY), confirmed that the disbursal has begun for Micron, with other companies, including Tata, to follow suit, reported ET.
Introduced in 2021 by Prime Minister Narendra Modi's administration, the PLI scheme allocated Rs 76,000 crore to bolster the semiconductor and display fab ecosystem.
The program was modified in September 2022 to offer uniform 50 per cent fiscal support across technology nodes, in an effort to attract major investors.
Under the revised scheme, government assistance is provided on a pari-passu basis for semiconductor and display fab projects, as well as other categories such as compound semiconductors.
The support is calculated based on quarterly expenditures by beneficiary companies.
Micron Technology, which committed to a total investment of USD 2.75 billion in June 2023, is establishing a chip packaging facility in Sanand, Gujarat.
The company has already commenced operations in its pilot plant, with the main unit expected to be operational by December 2025.
Tata group has also made significant strides in the semiconductor sector. Tata Semiconductor Assembly and Test (TSAT) is constructing a unit in Morigaon, Assam, with a daily production capacity of one million chips.
Additionally, Tata Electronics Private Limited (TEPL) is spearheading a semiconductor fab project in Dholera, Gujarat, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC).
These developments are part of India's broader semiconductor initiative, which aims to enhance domestic manufacturing, attract investments, and integrate the country into global supply chains.
(KNN Bureau)
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