India’s government on Wednesday raised fiscal support for new semiconductor facilities to cover 50% of project costs and said it will remove a ceiling for maximum permitted for display manufacturing as it moves to boost local production.
The announcement comes as Prime MinisterNarendra Modi’s government seeks to attract more big-ticket investments under a $10 billion incentive plan for chip and display production, aiming to make India a key player in the global supply chain.
The government had previously agreed to cover between 30% and 50% of the cost of setting up new display and chip Plants. It said on Wednesday that it will also cover 50% of the Capital Expenditure required to set up semiconductor packaging facilities.