Saturday, December 20, 2014: The two semiconductor wafer fabrication (FAB) manufacturing facilities will arrive in India after getting the approval from the national government. These units will be assigned to set by two major business groups, one led by Jaiprakash Associates Limited with IBM USA as technology partner [Technology: 90/65/45/28nm, Capacity: 40,000 WSPM] and other headed by HSMC Technologies India Pvt. Ltd with ST Microelectronics as technology partner [Technology: 90/65/45/28/22nm, Capacity: 40,000WSPM].
These two consortia will be entitled to get several incentives from the government of India like:
• Up to 25 per cent subsidy on the capital expenditure and tax reimbursement as permissible under Modified Special Incentive Package Scheme (M-SIPS) Policy.
• Exemptions given for Basic Customs Duty (BCD) for non-covered capital items.
• Under Section 35 (2AB) of the Income Tax (IT) Act, they will get 200 per cent deduction on expenditure on R&D.
• Investment linked deductions under Section 35AD of the IT Act.
• They will also get interest free loan worth Rs 51240 million each (exact sum will be released after the appraisal of Detailed Project Report).
Under its Make in India initiative, India aspires to become one of the leading global semiconductor manufacturing hub. With an aim to develop the nation’s industrial base across the country, PM Narendra Modi is pushing the ‘Make in India’ initiative by inviting foreign players to invest and commence there manufacturing facilities here.
