The Government of India supports semiconductor manufacturing through a comprehensive fiscal, infrastructure, design, and ecosystem-development framework, anchored under the Semicon India Programme and implemented by the India Semiconductor Mission (ISM) , The Ministry of Electronics and Information Technology (MeitY) Support for Electronics Manufacturing under Production Linked Incentives (PLI) Scheme and Allied Sectors.
Support to Make India Global Hub for Electronics Manufacturing
Production Linked Incentives for
I. Semicon India ProgrammeThe Scheme for setting up semiconductor and display manufacturing in India provides fiscal support of 50% of the project cost on pari-passu basis to the approved applicants.
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II. Chips to Startup(C2S)
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The Government of India provides 50% fiscal support on CAPEX on a pari-passu basis under the Semicon India Programme. In addition, State Governments, through their dedicated policies, offer an additional 20–35% CAPEX support, as detailed in the table below. State Governments also extend various incentives, including subsidies on land, water, and power, employee-linked incentives, interest subsidies, tax waivers, stamp duty waivers, and other benefits.
Additional subsidy on Land, Water, Power, etc., employee-linked incentives, Interest Subsidy, Tax Waivers, Stamp Duty Waiver, etc.
| # | States | Schemes | Fiscal Support | Link |
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| 1. | Andhra Pradesh | AP Innovation & Startup Policy 4.0 (2024-2029) | 30% on CAPEX |
Go To Page
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| 2. | Chattisgarh | Industrial Development Policy 2024-30 | - |
Go To Page
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| 3. | Assam | Assam Electronics (Semiconductor etc.) Policy 2023 | 20% on CAPEX |
Go To Page
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| 4. | Gujarat | Gujarat Semiconductor & Electronics Policy | 20% on CAPEX |
Go To Page
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| 5. | Karnataka | Karnataka Semiconductor Incentives | - |
Go To Page
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| 6. | Madhya Pradesh | Madhya Pradesh Semiconductor Policy 2025 | - |
Go To Page
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| 7. | Odisha | Odisha Semicon Fabless Policy 2023 | 25% on CAPEX |
Go To Page
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| 8. | Tamil Nadu | Tamil Nadu Semiconductor & Advanced Electronics Policy | - |
Go To Page
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| 9. | Uttar Pradesh | Uttar Pradesh Semiconductor Policy 2024 | 25% on CAPEX |
Go To Page
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| # | Schemes | Notified Date | Link |
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| 1. | Electronic Manufacturing Clusters (EMC) Scheme | 22 October 2012 |
Go To Page
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| 2. | Scheme of financial assistance for setting up of Electronics and ICT Academies | November 2014 |
Go To Page
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| 3. | Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors (SPECS) | 01 April 2020 |
Go To Page
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| 4. | Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing | 01 April 2020 |
Go To Page
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| 5. | EMC 2.0 (Modified Electronics Manufacturing Clusters) | 01 April 2020 |
Go To Page
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| 6. | Production Linked Incentive Scheme (PLI) for IT Hardware | 03 March 2021 |
Go To Page
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| 7. | Production Linked Incentive Scheme - PLI 2.0 for IT Hardware | 29 May 2023 |
Go To Page
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| 8. | Electronics Component Manufacturing Scheme (ECMS) | 28 March 2025 |
Go To Page
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| # | Organization | Project Name | Project Type | Location | Technology Partner | Investment | Capacity | Technology | Expected Employment | Products | Applications | Contact Details |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. |
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Micron Semiconductor Technology | ATMP | Sanand, Gujarat | In-house (USA) | ₹22,516 crore | 1,352 MN units per year | Flip-Chip and Wirebond. | ~ 20,000 jobs | DRAM components/modules, NAND components, SSDs | Mobile phones, laptop, servers, automobiles, other consumer electronics |
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| 2. |
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Tata Semiconductor Manufacturing | Semiconductor Fab | Dholera, Gujarat | PSMC (Taiwan) | ₹91,526 crore | 50,000 wafer starts per month (WSPM) | 12″ CMOS ranging from 28nm to 110nm. | ~ 20,000 jobs | PMIC, logic & display drivers | Mobile Phones, automobiles, consumer electronics,communications, display drivers for PCs, tablets, TVs, and commercial screens |
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| 3. |
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Tata Semiconductor Assembly and Test | OSAT | Morigaon, Assam | In House (India) | ₹27,120 crore | 15,600 MN units per year | Wirebond, Flip-Chip, ISP | ~ 26,000 jobs | QFN, QFP, TSOP, TO, WB-BGA, FC BGA, SiP | Automotive, EVs, consumer electronics, telecom, mobile |
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| 4. |
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CG Power and Industrial Solutions | OSAT | Sanand, Gujarat | Renesas (Japan), and Stars Microelectronics (Thailand) | ₹7,584 crore | 4,044 MN units per year | Wirebond & Flip-Chip | ~ 5,000 jobs | QFN, QFP, BGA, FCBGA, FC CSP | Consumer electronics, industrial, automotive, power applications, etc. |
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| 5. |
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Kaynes Semicon | ATMP Project | Sanand, Gujarat | Globetronics, Malaysia & AOI (Japan) | ₹3,307 crore | 2,310 MN units per year | Wirebond, Flip-Chip, Photonics | ~ 2000 jobs | QFN, SOT-223, TO-220, BGA, stacked BGA, FCBGA, SiP, photonics | Power devices, communications, automotive, EV, computing, industrial |
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| 6. |
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India Chip (HCL-Foxconn JV) | OSAT (ADVANCE PACKAGING) | Yeida, Uttar Pradesh | Hon Hai Technology (Foxconn) (Taiwan) | ₹3,706 crore | 432 MN units per year | Wafer-Level Packaging (Au bump) | ~ 4000 jobs | Display Driver ICs (Wafer level packaging), Chip Probing Services, Die Processing Services (DPS) | Displays for Mobiles, Tablets, Automobile etc. |
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| 7. |  |
Advanced System in Package Technologies | OSAT | Andhra Pradesh | APACT (South Korea) | ₹469 crore | 96 MN units per year | Wirebond & Flip-Chip | ~ 500 Jobs | QFN & FCBGA | Mobile phones & ICs for set top boxes, automobile applications & other electronic products. |
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| 8. |  |
SICSEM | Compound fab and ATMP | Bhubaneswar, Odisha | Clas-SiC (UK) & CDIL (India) | ₹2,067 crore | 96 MN units per year | SiC MOSFET & Diode Fab & Packaging | ~ 1000 Jobs | Power MOSFETs & diodes | EVs, solar, space, defense, high-voltage. |
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| 9. |  |
3D Glass | Advance Packaging | Bhubaneswar, Odisha | In-house (USA) | ₹1,944 crore | 120 MN units per year | Glass substrate ATMP & 3DHI modules | ~ 284 Jobs | FCBGA, ICS, RF SiP, AiP, glass interposers | HPC/AI compute, RF, automotive, sensors, quantum, bio-med |
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| 10. |  |
Continental Device India | OSAT | Mohali, Punjab | In-house (India) | ₹118 crore | 158 MN units per year | Advanced SiC & high-power diode packages | ~ 250 Jobs | MOSFETS, IGBTs Schottky Bypass Diodes, Bipolar Junction Transistors (TO247, D2PAK, DPAK, Schottky diodes) | Automotive, Renewable Energy Systems , Consumer electronics, industrial. |
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| # | Organization | Project Name | Project Outlay (in Lakhs ₹) | Location | Contact Details |
|---|---|---|---|---|---|
| 1. | Fermionic Design Pvt. Ltd. | A 4-channel Mux-Demux Gain Phase Shifter for Hybrid Beamformer in 8-12GHz for satellite communication and 5G Antenna Array systems | 1047.19 | KARNATAKA | gautam@fermionic.design |
| 2. | Morphing Machines Pvt. Ltd. | SoC, IP and Acclerator card powered by REDEFINE architecture and Ecosystem | 2048.83 | KARNATAKA | hemanth@morphing.in |
| 3. | Calligo Technologies Pvt. Ltd. | SoC with RISC V and POSIT Coprocessor based Accelerator Card with Software Ecosystem | 4192.75 | KARNATAKA | anantha.kinnal@calligotech.com |
| 4. | Sensesemi Technologies Pvt. Ltd. | SenseSoC-200 SoC for IOT and Medical Applications | 3907.02 | KARNATAKA | vijay.muktamath@sensesemi.com |
| 5. | Saankhya Labs Pvt. Ltd. | SoC for Baseband Processing for 5G Telecom infrastructure | 2558.77 | KARNATAKA | - |
| 6. | Aryabhata Circuits and Research Labs Pvt. Ltd. | Next Generation IC for Advanced Tire Monitoring System (TMS) | 4095.49 | KARNATAKA | - |
| 7. | BigEndian Semiconductors Pvt. Ltd. | SoC for Video Audio Surveillance Unit, Design and Development | 3108 | KARNATAKA | - |
| 8. | C2i Semiconductors Pvt. Ltd. | A Digital Multiphase Controller IC for Enterprise Server Power | 8375.2 | KARNATAKA | e24004@c2isemi.com |
| 9. | MMRFIC Technology Pvt. Ltd. | Indigenous Ka-Band Beamformer RADAR Chip | 1253.04 | KARNATAKA | ravi@mmrfic.com |
| 10. | Sophrosyne Technologies Pvt. Ltd. | High-precision, Ultra-low-power SoC for real-time monitoring of cardiac activity and other vital health parameters | 2147.1 | KARNATAKA | manish@sophrosynetechnologies.com |
| 11. | Aagyavision Pvt. Ltd. | Radar RF chips for edge applications | 2547.9 | KARNATAKA | ceo@aagyavision.com |
| 12. | Aheesa Digital Innovations Pvt. Ltd. | VEGA Processor based GPON ONT and Network SoC for FTTX and Broadband applications | 4140 | TAMIL NADU | aheesa@aheesa.com |
| 13. | Mindgrove Technologies Pvt. Ltd. | Vision SoC using Shakti processor for Edge Computing | 4786.11 | TAMIL NADU | - |
| 14. | InCore Semiconductors Pvt. Ltd. | RISC-V multi-core super scalar processor for smartphones and edge AI. | 1743 | TAMIL NADU | admin@mindgrovetech.in |
| 15. | MBit Wireless Pvt. Ltd. | Dualmode LTE Cat bis and NBIoT Baseband chipset for IoT applications | 6536 | TAMIL NADU | - |
| 16. | Netrasemi Pvt. Ltd. | A High-End Edge-AI SoC with on-chip video analytics and vector processing computing. | 4430 | KERALA | jyothis@netrasemi.com |
| 17. | Netrasemi Pvt. Ltd. | Development of ML Acceleration chip with Programmable Hardware Infrastructure for Robots, Drones, Industrial automation and Video Analytics systems (64 TOPS AI performance) on 12nm, TSMC | 6125 | KERALA | jyothis@netrasemi.com |
| 18. | Green PMU Semi Pvt. Ltd. | Energy-Harvesting power management Chip for IoT applications | 986 | TELANGANA | saichandrateja@greenpmusemi.com |
| 19. | WiSig Networks Pvt. Ltd. | A 5G NB-IoT based SoC for Terrestrial and Satcom Applications | 2555.57 | TELANGANA | kkuchi@wisig.com |
| 20. | MosChip Technologies Pvt. Ltd. | Smart Energy Meter IC-VIDYUT | 4000 | TELANGANA | srinivasa.kakumanu@moschip.com |
| 21. | Multi Nano Sense Technologies Pvt. Ltd. | MEMS Platform Gas Sensors and CMOS Data Acquisition AFE SoC | 2953 | MAHARASHTRA | shashank@multinanosense.com |
| 22. | Vervesemi Microelectronics Pvt. Ltd. | A Mixed Signal Microcontroller for Motor Control and Smart Power Applications | 2964 | UTTAR PRADESH | rakesh@vervesemi.com |
| 23. | Incise Infotech Limited | A Linear LED Driver IC. | 428 | UTTAR PRADESH | |
| 24. | DV2JS Innovation LLP | Low Light Image Sensor with SinglePhoton Detection for Security, Surveillance, Automobile Cameras | 748 | DELHI | vrinda@3rditech.com |
| # | Name of State/UT | Name of Institution |
|---|---|---|
| 1. | Telangana | University of Hyderabad |
| 2. | International Institute of Information Technology Hyderabad | |
| 3. | University College of Engineering Osmania University, Hyderabad | |
| 4. | Chaitanya Bharathi Institute of Technology, Hyderabad | |
| 5. | Indian Institute of Technology Hyderabad | |
| 6. | National Institute of Technology Warangal | |
| 7. | JNTUH University College of Engineering Hyderabad | |
| 8. | Kerala | College of Engineering Trivandrum, Thiruvananthapuram |
| 9. | Cochin University of Science and Technology, Kochi | |
| 10. | Rajagiri School of Engineering and Technology, Kochi | |
| 11. | National Institute of Technology Calicut | |
| 12. | Indian Institute of Technology Palakkad | |
| 13. | Model Engineering College, Thrikkakara, Kochi | |
| 14. | Digital University Kerala, Thiruvananthapuram | |
| 15. | M/s Silizium Circuits Pvt. Ltd | |
| 16. | M/s Netrasemi Pvt. Ltd | |
| 17. | Punjab | National Institute of Technology Jalandhar |
| 18. | Centre for Development of Advanced Computing Mohali | |
| 19. | Sant Longowal Institute of Engineering & Technology, Sangrur | |
| 20. | Indian Institute of Technology Ropar | |
| 21. | Tamil Nadu | Dr. Mahalingam College of Engineering and Technology, Coimbatore |
| 22. | SNS College of Technology, Coimbatore | |
| 23. | National Institute of Technology Tiruchirappalli | |
| 24. | Indian Institute of Information Technology Tiruchirappalli | |
| 25. | Anna University Regional Campus Coimbatore | |
| 26. | Mohamed Sathak Engineering College, Ramanathapuram | |
| 27. | Karunya Institute of Technology and Sciences, Coimbatore | |
| 28. | St. Xaviers Catholic College of Engineering, Kanya Kumari | |
| 29. | College of Engineering Guindy, Anna University, Chennai | |
| 30. | Indian Institute of Information Technology Design and Manufacturing, Kancheepuram | |
| 31. | M/s Aries Biomed Technology Pvt. Ltd | |
| 32. | M/s InCore Semiconductors Pvt. Ltd | |
| 33. | Odisha | Parala Maharaja Engineering College, Berhampur |
| 34. | National Institute of Technology Rourkela | |
| 35. | Indian Institute of Technology Bhubaneswar | |
| 36. | International Institute of Information Technology Bhubaneswar | |
| 37. | West Bengal | Maulana Abul Kalam Azad University of Technology West Bengal |
| 38. | Indian Institute of Engineering Science and Technology Shibpur | |
| 39. | National Institute of Technology Durgapur | |
| 40. | Indian Institute of Information Technology Kalyani | |
| 41. | University of Calcutta | |
| 42. | Uttar Pradesh | Indian Institute of Technology Kanpur |
| 43. | Centre for Development of Advanced Computing (CDAC) Noida | |
| 44. | Aligarh Muslim University | |
| 45. | Indian Institute of Information Technology Allahabad | |
| 46. | Motilal Nehuru National Institute of Technology Allahabad | |
| 47. | Madan Mohan Malaviya University of Technology, Gorakhpur | |
| 48. | Goa | National Institute of Technology Goa |
| 49. | Gujrat | Indian Institute of Technology Gandhinagar |
| 50. | Sardar Vallabhbhai National Institute of Technology, Surat | |
| 51. | Dhirubhai Ambani Institute of Information and CommunicationTechnology, Gandhinagar | |
| 52. | Institute of Technology, Nirma University, Ahmedabad | |
| 53. | Karnataka | Indian Institute of Science Bangalore |
| 54. | Cambridge Institute of Technology, Bengaluru | |
| 55. | BMS College of Engineering, Bengaluru | |
| 56. | REVA University, Bengaluru | |
| 57. | PES University, Bengaluru | |
| 58. | KLE Technological University, Hubballi | |
| 59. | International Institute of Information Technology Bangalore | |
| 60. | Indian Institute of Technology Dharwad | |
| 61. | M/s Morphing Machines Pvt. Ltd | |
| 62. | M/s TSilicon Design Pvt. Ltd | |
| 63. | M/s Chipspirit Technologies Pvt. Ltd | |
| 64. | M/s Sandlogic Technologies Pvt. Ltd | |
| 65. | M/s IntSemi Technologies Pvt. Ltd | |
| 66. | M/s Semi-Ksha Semiconductor India Pvt. Ltd. | |
| 67. | Madhya Pradesh | Indian Institute of Technology Indore |
| 68. | Shri G.S.Institute of Technology and Science Indore | |
| 69. | Atal Bihari Vajpayee-Indian Institute of Information Technology and Management (ABV-IIITM) Gwalior | |
| 70. | Devi Ahilya Vishwavidyalaya Indore | |
| 71. | Chhattisgarh | National Institute of Technology Raipur |
| 72. | Indian Institute of Technology Bhilai | |
| 73. | Himachal Pradesh | Indian Institute of Technology Mandi |
| 74. | National Institute of Technology Hamirpur | |
| 75. | Bihar | Indian Institute of Technology Patna |
| 76. | National Institute of Technology Patna | |
| 77. | Indian Institute of Information Technology Bhagalpur | |
| 78. | Maharashtra | Indian Institute of Technology Bombay |
| 79. | V. E. S. Institute of Technology, Mumbai | |
| 80. | National Institute of Electronics & Information TechnologyAurangabad | |
| 81. | Cummins College of Engineering for Women, Pune | |
| 82. | Indian Institute of Information Technology Pune | |
| 83. | M/s Aryabhata Circuits and Research (ABCR) Labs Pvt. Ltd | |
| 84. | M/s Panache Digilife Limited | |
| 85. | Jharkhand | National Institute of Technology Jamshedpur |
| 86. | Indian Institute of Technology (Indian School of Mines) Dhanbad | |
| 87. | Uttarakhand | Indian Institute of Technology Roorkee |
| 88. | National Institute of Technology Uttarakhand | |
| 89. | Rajasthan | Malaviya National Institute of Technology Jaipur |
| 90. | Haryana | Kurukshetra University |
| 91. | Andhra Pradesh | Indian Institute of Technology Tirupati |
| 92. | Indian Institute of Information Technology Design and Manufacturing Kurnool | |
| 93. | National Institute of Technology Andhra Pradesh | |
| 94. | Shri Vishnu Engineering College for Women, Bhimavaram | |
| 95. | Assam | National Institute of Technology Silchar |
| 96. | Mizoram | National Institute of Technology Mizoram |
| 97. | Manipur | National Institute of Technology Manipur |
| 98. | Nagaland | National Institute of Technology Nagaland |
| 99. | Tripura | National Institute of Technology Agartala |
| 100. | Sikkim | National Institute of Technology Sikkim |
| 101. | Arunachal Pradesh | National Institute of Technology Arunachal Pradesh |
| 102. | Meghalaya | North Eastern Hill University, Shillong |
| 103. | National Institute of Technology Meghalaya | |
| 104. | Delhi | Indian Institute of Technology Delhi |
| 105. | National Institute of Technology Delhi | |
| 106. | Indraprastha Institute of Information Technology Delhi | |
| 107. | M/s DV2JS Innovation LLP | |
| 108. | Jammu & Kashmir | Indian Institute of Technology Jammu |
| 109. | Chandigarh | National Institute of Technical Teachers Training and Research Chandigarh |
| 110. | University Institute of Engineering and Technology, PanjabUniversity, Chandigarh | |
| 111. | Punjab Engineering College | |
| 112. | Puducherry | National Institute of Technology Puducherry |
| 113. | Puducherry Technological University |
Semi-Conductor Laboratory (SCL), an autonomous body under the Ministry of Electronics and Information Technology (MeitY), Government of India, is the only Integrated Device Manufacturing Facility in the country providing end-to-end solutions for Development of Application Specific Integrated Circuits (ASICs), Opto-electronics devices, and Micro Electro Mechanical System (MEMS) Devices encompassing Design, Fabrication, Assembly, Packaging, Testing, and Reliability Assurance.
Formerly known as Semiconductor Complex Limited, a Government of India enterprise, it was converted into Semi-Conductor Laboratory under the Department of Space, Government of India, w.e.f. September 1, 2006. Administrative control of SCL, Society was transferred from the Department of Space (DoS) to the Ministry of Electronics and Information Technology (MeitY) vide notification No. 1/21/1/2022-Cab dated February 07, 2022.
SCL has an 8" wafer fab line qualified to the JEDEC-JP001A standard with a 180 nm CMOS technology node. Process capability at SCL enables a 1.8V, 1.8/3.3V, or 1.8V/5V power-supply solution with 4-6 Al-metal layers and analog modules. The VLSI design domain in SCL spreads over analog, digital, mixed-signal, memory, RF-CMOS, and optoelectronic in the form of silicon-proven and space-qualified ASICS, ASSPs, SoCs, SCL excels in developing ceramic packages and meets the demanding test requirements at the wafer and package level, along with test plan development for high-pin-count integrated circuits, RF, and MEMS devices. At SCL, quality and reliability assurance adhere to global performance specifications such as MIL-PRF-38535, JEDEC-JP001A, and MIL-STD-883. SCL possesses capabilities in power, water, and air management, bulk, and specialty gas distribution systems. The quality parameters of Ultra Pure Water (UPW) and bulk gases produced at SCL are at par with international standards. SCL brings decades of experience to provide customers with unparalleled microelectronics solutions in India. SCL is also engaged in the fabrication of Hi-Rel boards, Radio systems, and the indigenization of electronic subsystems.
| # | Organization | Location |
|---|---|---|
| 1. | IZMO | Bangalore |
| 2. | Natronix | Chennai |
| 3. | Polymatech | Chennai |
| 4. | Polymatech | Chattisgarh |
| 5. | TARQ Tech | Chandigarh |
| 6. | AEIM | Chattisgarh |
| 7. | Sahasra | Bhiwandi |
| 8. | HCL Tech | Punjab |
| 9. | SPEL | Chennai |
| # | MoU Name | Year | Details | Reference |
|---|---|---|---|---|
| Government | ||||
| 1. | India – Singapore MoU on Semiconductor Ecosystem Partnership | Sep'24 | To support the growth of India’s semiconductor industry and ecosystem through cooperation under the India-Singapore Semiconductor Policy Dialogue, facilitating partnerships with Singapore companies, advancing resilient semiconductor supply chains, joint research, workforce development, and business cooperation. |
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| 2. | India - EU MoU on Working Arrangements on Semiconductor Ecosystem | Nov'23 | Strengthens India-EU collaboration under the Trade and Technology Council (TTC) focusing on strategic technologies, R&D, skills development, transparency of subsidies, and enhanced global semiconductor competitiveness. |
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| 3. | India – Japan MoU on Semiconductor Supply Chain Partnership | Jul'23 | Enhances semiconductor supply chain resilience by leveraging complementary strengths through government-to-government and business-to-business collaboration, including technology advancement and employment generation. |
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| 4. | India – USA MoU on Semiconductor Supply Chain and Innovation Partnership | Mar'23 | Facilitates commercial opportunities and ecosystem growth through collaboration on semiconductor supply chains, R&D, talent, and skill development. |
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| 5. | India-Netherlands Partnership on Semiconductors and Related Emerging Technologies | April'25 | To facilitate mutually beneficial cooperation between India and the Netherlands in the field of semiconductors and related emerging technologies such as photonics, quantum, cyber-security technologies and AI. Such cooperation to encompass policy dialogue, collaboration among industry and research institutions, and joint efforts in research and development, innovation, supply chain resilience, trade promotion, talent development, and business-to-business engagement. |
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| Industry | ||||
| 6. | MoU with IBM | Oct'23 | Establishes a semiconductor research centre in India, focusing on R&D, IP sharing, chip prototyping, and innovation across advanced semiconductor technologies. |
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| Academia | ||||
| 7. | MoU between ISM and Arizona State University | Sep'25 | Supports India's semiconductor and microelectronics ecosystem via academic exchange, joint research, and institutional partnerships contributing to workforce development. |
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| 8. | MoU between ISM and NAMTECH | Sep'25 | Focuses on workforce development and applied research, building a skilled semiconductor manufacturing talent pipeline through specialized curricula. |
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| 9. | MoU between ISM, Lam Research and IISc Bengaluru | Apr'24 | Delivers advanced nanofabrication training, faculty development programs, and industry-grade simulation tools to support semiconductor R&D and education. |
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| 10. | MoU between ISM and Purdue University | May'23 | Supports semiconductor education, research, and workforce development through dual-degree programs, joint research, and commercialization initiatives. |
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| Industry Announcements | ||||
| 11. | MoU between Tata Electronics and Merck Electronics | Sep'25 | Collaboration for semiconductor materials, fabrication infrastructure, chemical supply chains, safety practices, and workforce development in India. |
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| 12. | MoU between Tata Electronics and Fujifilm | May'25 | Collaboration on development of advanced semiconductor materials to support manufacturing operations in India. | - |
| 13. | MoU between Tata Electronics and Tokyo Electron Limited (TEL) | Sep'24 | Supports semiconductor equipment infrastructure, test facilities, workforce training, and R&D initiatives to strengthen India’s ecosystem. |
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| 14. | Microchip Technology Investment | Jul'23 | USD 300 million expansion in India to enhance R&D, engineering labs, workforce training, and collaboration with academia and startups. |
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| 15. | AMD Investment | Jul'23 | USD 400 million investment to expand R&D and engineering operations in India, creating ~3,000 new roles and strengthening chip design capabilities. |
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| 16. | Applied Materials Investment | Jul'23 | USD 400 million collaborative engineering centre in Bengaluru to support semiconductor equipment innovation, workforce development, and global integration. |
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Brief
Under the AEO programme, trusted businesses that comply with customs laws are granted benefits such as quicker clearances and reduced inspections. The program offers the benefits starting from Tier 1 (T1) which can be upgraded to Tier 2 (T2) and Tier 3 (T3) respectively. Also, additional benefits are available for AEO-LO.
About AEO
The Indian AEO Programme, which started in 2011, has come a long way in the last few years. It was designed to set standards to secure and to facilitate the ever-growing flow of goods in international trade. Today, the programme has a membership of more than 5,000 AEO entities. That is, more than 5,000 economic entities which have actively collaborated with Indian Customs to ensure safety and security in the Supply Chain. And in return, they are reaping benefits of an ever-widening set of benefits from Indian Customs such as faster processing and clearance of cargo, deferred payment of duty, direct port delivery/entry.
AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. The programme aims to enhance international supply chain security and facilitate movement of legitimate goods.AEO encompasses various players in the International supply chain. Under this programme.
Benefits associated with AEO
AEO-Eligibility Criteria for an entity
1. Handled 25 documents (s/B & Bills of Entry) in last Financial Year.
2. Should Undertake Customs Related Work.
3. Be a part of international supply chain.
4. AEO can only be given to legal entity and not group company.
5. Have had business activity for three Financial Years (can be waived in deserving cases).
Brief
MRAs are agreements between countries that allow mutual acceptance of each other’s AEO programmes, enabling Indian exporters and importers to receive similar trade facilitation benefits abroad. By this agreement, AEO status of the MRA partner’s AEO programme is recognised by each other and trade facilitation is extended reciprocally.
Joint Action Plans (JAPs) acts as the broad framework of timeline and actions that needs to be completed in phased manner to conclude an MRA.
Indian Customs has signed Mutual Recognition Agreements (MRAs) with seven foreign customs administrations.
India has also signed Joint Action Plans (JAPs) to pursue MRAs with other countries as part of ongoing negotiations.
About MRA
Mutual Recognition Agreements are the international face and connecting link of the domestic AEO Programme of various countries. It acts as an equalizer that harmonize the minor difference to allow for seamless facilitation in terms of benefits and processes for movement of goods across borders for the domestic AEO accredited entities. Mutual Recognition of AEOs is a key element of the WCO SAFE Framework to strengthen end-to-end security of supply chains and to multiply benefits for traders at a global level.
By mutual recognition of AEOs two customs administrations agree to:
• recognise the AEO authorisation issued under the other countries programme and
• provide reciprocal benefits to AEOs of the other countries AEO entity.
Benefits of MRA
Both Customs and AEO companies are considered trusted members of the trade community whose security standards have been validated by either of the partner Customs Administrations. Therefore, AEO exporters/importers are given a reduction in their risk score by partner Customs Administrations, which will translate into fewer examinations at the port of importation.
The status of the MRA partner’s AEO programme’s participant is recognized by each other and is used as a risk-assessment factor.
Traders do not have to go through two or more separate validation visits. The initial validation conducted by the local Customs Administration as being certified under respective AEO programme would be recognized by other MRA partner countries.
Since Mutual Recognition is based on having equally stringent minimum security criteria, one country’s AEO essentially complies with the security criteria of those countries with which it has achieved an MRA with. Common standards among programmes will also aid companies in conducting and documenting their security self-assessments.
Closer collaboration among and between Customs Administrations and their AEO programmes participants will lead to more transparency in international commerce. Information exchanged between these partners expedites and facilitates the movement of commerce across nations.
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.
This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes.
The SEZ Act 2005 envisages key role for the State Governments in Export Promotion and creation of related infrastructure. A Single Window SEZ approval mechanism has been provided through a 19 member inter-ministerial SEZ Board of Approval (BoA). The applications duly recommended by the respective State Governments/UT Administration are considered by this BoA periodically. All decisions of the Board of approvals are with consensus.
The SEZ Rules provide for different minimum land requirement for different class of SEZs. Every SEZ is divided into a processing area where alone the SEZ units would come up and the non-processing area where the supporting infrastructure is to be created.
1. Simplified procedures for development, operation, and maintenance of the Special Economic Zones and for setting up units and conducting business in SEZs.
2. Single window clearance for setting up of an SE.
3. Single window clearance for setting up a unit in a Special Economic Zone.
4. Single Window clearance on matters relating to Central as well as State Governments
5. Simplified compliance procedures and documentation with an emphasis on self certification.
The developer submits the proposal for establishment of SEZ to the concerned State Government. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval.
The Board of Approval has been constituted by the Central Government in exercise of the powers conferred under the SEZ Act. All the decisions are taken in the Board of Approval by consensus. The Board of Approval has 19 Members.
The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues. Each Zone is headed by a Development Commissioner, who is ex-officio chairperson of the Approval Committee.
Once an SEZ has been approved by the Board of Approval and Central Government has notified the area of the SEZ, units are allowed to be set up in the SEZ. All the proposals for setting up of units in the SEZ are approved at the Zone level by the Approval Committee consisting of Development Commissioner, Customs Authorities and representatives of State Government. All post approval clearances including grant of importer-exporter code number, change in the name of the company or implementing agency, broad banding diversification, etc. are given at the Zone level by the Development Commissioner. The performance of the SEZ units are periodically monitored by the Approval Committee and units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.
The India Semiconductor Mission is a strategic initiative undertaken by the Indian government to promote the domestic semiconductor industry. Its aim is to enhance semiconductor design and manufacturing capabilities within the country, fostering innovation, employment, and economic growth.
The government has approved the Semicon India programme with a total outlay of Rs 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country. The programme has further been modified in view of the aggressive incentives offered by countries already having established semiconductor ecosystem and limited number of companies owning the advanced node technologies. The modified programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem. This will serve to pave the way for India’s growing presence in the global electronics value chains.
The key objectives of the India Semiconductor Mission include:
The India Semiconductor Mission is driven by the Indian government in collaboration with various industry associations, research organizations, and educational institutions. It operates under the guidance of the Ministry of Electronics and Information Technology (MeitY) and other relevant government bodies.
The India Semiconductor Mission focuses on several key areas, including:
Companies and organizations can participate in the India Semiconductor Mission by engaging in collaborative research projects, technology development, and innovation initiatives. They can also participate in industry conferences, seminars, and exhibitions like Semicon India to showcase their products, services, and expertise.
Participating in the Semicon India Program offers numerous benefits, such as:
The India Semiconductor Mission offers various skill development programs, training workshops, and certification courses to individuals interested in enhancing their skills and knowledge in the semiconductor field. These initiatives provide hands-on learning, industry exposure, and mentorship opportunities to nurture talent and promote career growth.
Research institutions and academia play a crucial role in the India Semiconductor Mission. They contribute through cutting-edge research, technology development, and talent grooming. Collaborations between industry and academia are encouraged to foster innovation, knowledge exchange, and collaborative projects that address industry challenges and drive technological advancements.
The India Semiconductor Mission aims to strengthen the semiconductor industry in India, which in turn contributes to the country's overall economic growth. It creates employment opportunities, attracts investments, reduces imports, promotes technological self-reliance, and fosters innovation. The growth of the semiconductor industry has a multiplier effect on various sectors, including electronics, telecommunications, healthcare, automotive, and defense, leading to sustainable economic development.
