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In an bid to position India as a global hub for hi-tech production, the Union Cabinet has approved a Rs 76,000 crore policy boost for semiconductor and display manufacturing ecosystem in the country. The scheme is expected to usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design. It will strengthen India's technological prowess in these areas of strategic importance and economic self-reliance.

The programme will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations. The government has lined up an attractive incentive support for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging and semiconductor design. The scheme for setting up of semiconductor fabs and display fabs in India will extend fiscal support of up to 50 per cent of project cost to eligible applicants.

The Centre will work closely with the state governments on high-tech clusters with requisite infrastructure in terms of land, semiconductor grade water, power, logistics and research ecosystem, to approve applications for setting up at least two greenfield semiconductor fabs and two display fabs in the country.