The Central Government provides a 50 percent subsidy, and the Andhra Pradesh Government offers an additional 30 percent subsidy.
The Andhra Pradesh government has introduced the Semiconductor & Display Fab Policy 2024-29 to attract investments in semiconductor and display fabrication sectors. This policy, effective for five years from November 14, 2024, as per G.O Ms.No.7, also emphasizes Outsourced Assembly & Testing (OSAT), Assembling, Testing, Marking, and Packing (ATMP), and other emerging sub-sectors to foster a self-sustaining semiconductor ecosystem.
According to the state cabinet officials, this policy would encourage both domestic and international investments in semiconductor and display fabrication, as well as the formation of top-notch facilities and infrastructure to support semiconductor manufacturing and related activities. Additionally, it promotes R&D initiatives to drive innovation and technological advancements within the sector.
The Government of Andhra Pradesh (GoAP) has introduced Electronics Manufacturing Policy 4.0 for the period 2024-2029, aiming to attract investments in both white and brown goods, consumer durables, and non-durables. While this policy addresses various segments of the electronics industry, the semiconductor fabrication (fab) ecosystem remains critical, as it supplies the electronic circuit boards fundamental to all electronic devices.
Recognizing the pivotal role of semiconductor manufacturing, the GoAP has also approved the Semiconductor & Display Fab Policy 2024-29. By implementing these complementary policies, Andhra Pradesh aims to establish a comprehensive and robust electronics manufacturing ecosystem, encompassing end-product assembly and the critical semiconductor components that underpin modern electronic devices.
The Andhra Pradesh Semiconductor & Display Fab Policy 2024-29 outlines a comprehensive incentive framework to attract investments in the semiconductor and display fabrication sectors. Projects approved under the ISM are eligible for substantial subsidies. The Central Government provides a 50 percent subsidy, and the Andhra Pradesh Government offers an additional 30 percent subsidy, totaling an 80 percent subsidy for these projects. Also, projects not covered under the ISM but fulfilling the Government of Andhra Pradesh’s (GoAP) specific criteria are also eligible for incentives.
The policy offers customized incentives for large-scale projects, termed mega and ultra mega projects. These incentives are tailored to the specific needs and scale of the projects to attract significant investments and establish Andhra Pradesh as a hub for semiconductor manufacturing.
