No Expiry for PLI Scheme: Indian Government Invites Continual Industry Participation

    The Union Government removes closing dates for the semiconductor production-linked incentive (PLI) scheme, aiming to foster continual growth and competition.

    In an effort to encourage industry participation and competition in the semiconductor and display manufacturing ecosystem, the Union Government has removed the closing date for the semiconductor production-linked incentive (PLI) scheme. This significant policy shift was reported by Financial Express (FE), indicating a long-term strategic commitment to developing this critical industry.

    Semiconductors PLI Scheme: No Expiry, More Opportunities

    Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, affirmed that interested companies can apply for the scheme at any point in time. The goal is to attract more players into setting up semiconductor fabrication units, preventing a monopoly-like situation.

    “To increase competition and foster innovation, we are removing the closing date for the PLI scheme. We are not concerned about the name of the company applying. They just need to meet the capital and technology requirements and are welcome to apply,” said Chandrasekhar.

    Initially, when the scheme was launched in December 2021, companies had a window of 45 days to apply.

    Notable Participants and Investment

    Companies such as Vedanta-Foxconn JV, IGSS Ventures, and ISMC are already investing a whopping $13.6 billion to establish chip manufacturing facilities under the scheme. These firms have also requested $5.6 billion from the government in financial support. As of now, this request is still under review.

    PLI Scheme: Extending Beyond Smartphones

    In addition to semiconductors, the government plans to launch similar incentive schemes for computers and devices, telecom, automotive, and IT hardware sectors. The broadening of the PLI scheme is a testament to the government’s commitment to nurturing local manufacturing capabilities across various tech industries.

    The PLI scheme for IT hardware is intended to promote local manufacturing of laptops, tablets, and desktops, among other products. However, companies had expressed concerns about the perceived lower incentives for manufacturing.

    To address these apprehensions, the Ministry of Electronics and Information Technology (MeitY) is preparing a fresh draft of the PLI scheme to attract major global manufacturers like Dell and HP. Chandrasekhar stated, “The government wants to make other PLI schemes just as successful as it has been for smartphone manufacturing.”

    The Indian government’s decision to remove the expiry date for the PLI scheme sends a clear signal to the industry about its long-term commitment to fostering local manufacturing capabilities. This move, coupled with the planned expansion of the PLI scheme to other tech industries, is expected to position India as an attractive hub for tech manufacturing in the coming years.

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