TMEI has made changes to the manufacturing of semiconductors

The Ministry of Electronics and IT has made changes to the scheme for the manufacturing of semiconductors and display fabs. The changes include:

  • The scheme will now be called the “Modified Programme for Semiconductors and Display Fab Ecosystem”.
  • The scheme will be applicable to both silicon-based and compound semiconductor fabs.
  • The scheme will provide fiscal support of up to 50% of the project cost.
  • The scheme will be open to both domestic and foreign investors.

The approval for the scheme for setting up compound semiconductors and display fabs assembly and test facilities will now be given by the Union Cabinet.

The changes to the scheme are in line with the government’s vision of making India a global hub for semiconductors and display manufacturing. The government has set a target of setting up 20 semiconductor fabs and 10 display fabs in India by 2025.

The changes to the scheme are expected to attract investments in the semiconductor and display manufacturing sectors in India. The government is confident that the changes will help India achieve its target of becoming a global hub for semiconductors and display manufacturing.

Some of the benefits of the changes to the scheme:

  • The changes will make it easier for investors to set up semiconductor and display fabs in India.
  • The changes will provide fiscal support to investors, which will help to reduce the cost of setting up semiconductor and display fabs.
  • The changes will make India a more attractive destination for semiconductor and display manufacturing.

The changes to the scheme are a positive step for the semiconductor and display manufacturing sectors in India. The changes are expected to attract investments in the sectors and help India achieve its target of becoming a global hub for semiconductors and display manufacturing.

Stocks are likely to be affected by the news in India:

  • Tata Steel: The company’s stock could fall as the news could lead to a slowdown in demand for steel.
  • Hero MotoCorp: The company’s stock could also fall as the news could lead to a slowdown in demand for motorcycles.
  • Reliance Industries: The company’s stock could be volatile as it has exposure to both the oil and gas and retail sectors, which could be impacted by the news.
  • Infosys: The company’s stock could fall as the news could lead to a slowdown in demand for IT services.
  • HDFC Bank: The company’s stock could also fall as it is India’s largest private sector bank and could be impacted by any slowdown in the economy.

It is important to note that the impact of the news on these stocks will depend on a number of factors, including the severity of the slowdown and the duration of the impact. Investors should carefully monitor these stocks and make investment decisions based on their individual risk tolerance and investment goals.

Here are some additional details about the news that could impact these stocks:

  • The Reserve Bank of India (RBI) has raised interest rates by 50 basis points, the highest increase since 2000. This is expected to lead to a slowdown in economic growth and could impact demand for products and services from these companies.
  • The Indian government has announced a series of measures to curb inflation, including a ban on wheat exports and a reduction in import duties on edible oils. These measures are expected to lead to higher prices for consumers and could impact demand for these companies’ products.
  • The global economy is facing a number of headwinds, including the war in Ukraine and rising inflation. These factors could lead to a slowdown in global demand for products and services from these companies.
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