Semicon PLI could de-risk India's digital infrastructure build

As India scales 5G, fibre, edge, and data centres, Semicon India aims to improve component supply, lead times, and cost stability for equipment.

- BY SHETAL MEHTA

India’s semiconductor strategy has moved from developmental intent to structured execution, driven primarily through Production Linked Incentive (PLI) schemes and the broader Semicon India programme. With an outlay of Rs 76,000 crore dedicated to semiconductors and display manufacturing, the policy framework is designed to reduce capital risk, strengthen domestic capacity, and anchor India within global supply chains.

For the communications ecosystem, including connectivity equipment, digital infrastructure, telecom networks, and data-driven platforms, this shift carries direct implications for the availability, cost, and reliability of core electronic components.

SEMICON INDIA TURNS CHIP POLICY INTO EXECUTION

The central semiconductor programme provides fiscal support across fabrication, compound semiconductor manufacturing, ATMP/OSAT operations, and display fabs, with support up to 50% of project cost in approved categories. Complementing this are PLI schemes for large-scale electronics manufacturing and for telecom and networking products, each offering incentive payouts linked to incremental domestic production over multiyear timelines.

This layered policy design is particularly relevant for digital infrastructure, which depends on a steady supply of RF chips, power devices, mixed-signal semiconductors, display drivers, and memory components. By lowering initial capital intensity and improving long-term feasibility for manufacturers, the PLI ecosystem aims to stabilise the supply pipeline for equipment that supports India's growing data traffic, broadband expansion, and enterprise networks.

EARLY OUTCOMES AND MEASURED PROGRESS