The Hindu Business Line : Semiconductor policy norms may be issued soon

New Delhi, Aug. 10 The much-awaited guidelines for the semiconductor policy are likely to be issued in the next few days, clearing the decks for semiconductor manufacturers to apply under the scheme.

“The guidelines have already been cleared by the Finance Ministry and will be notified by the Department of IT soon,” sources said.

The Government would provide capital subsidy for the investors setting up chip manufacturing units in India under the semiconductor policy announced earlier this year. The subsidy would be in the form of tax breaks and interest-free loans.

The policy provides for 25 per cent subsidy on the capital expenditure incurred in the first 10 years for semiconductor manufacturers located outside SEZs with exemption on countervailing duty on capital goods; and 20 per cent subsidy for those located within SEZs.

The minimum investment for availing themselves of the incentive package has been pegged at Rs 2,500-crore for chip fab units and Rs 1,000-crore for ecosystem players.

Application format

The sources said that the guidelines will spell-out the format for application by semiconductor manufacturers to avail themselves of stipulated benefits under the policy. An appraisal committee to be headed by additional secretary in IT Department would receive expression of interest from interested parties and submit its recommendations to the Government.

Already players such as SemIndia and Hindustan Semiconductor Manufacturing Company have announced plans to set-up fabrication units in the country. In addition, Moser Baer has announced its plans to establish a thin film solar fab in Noida SEZ at an investment of $250 million, becoming the first company in the photovoltaic space to seek benefits under the policy.

In June, California-headquartered Signet Solar announced its plans to invest $2 billion to manufacture solar photovoltaic modules in India.

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