Budget may offer production incentives for fabless chip cos

New Delhi: The Union Budget 2020 may unveil a scheme on production linked benefits to attract hi-tech manufacturing in semiconductors, and microprocessors to India, apart from giving tax incentives to solar electric charging infrastructure, computers, and servers for its thrust in manufacturing of global products to reduce imports.

To make it look more attractive to MNCs to opt for domestic electronics manufacturing in India, the Budget may dish out production-linked subsidies for companies involved in semiconductor fabrication. This is aimed at inviting global semiconductor, and microprocessor companies to set up plants in India.