The Government of Andhra Pradesh brought the Semiconductor & Display Fab Policy to leverage the synergies, economies of scale, and the economic scope between the semiconductor fab plants and electronics industry. 
| Photo Credit: The Hindu

The Andhra Pradesh (A.P.) Government approved the Semiconductor & Display Fab Policy 2024-29 to attract investments in semiconductor and display fabrication sector with additional focus on Outsourced Assembly & Testing (OSAT), Assembling, Testing, Marking and Packing (ATMP) and other emerging sub-sectors to foster a self-sustaining semiconductor ecosystem. The policy is valid for five years as per G.O Ms.No.7 dated November 14, 2024.

It was stated that the Government of A.P. (GoAP) introduced A.P. Electronics Manufacturing Policy 2024-29 seeking to attract investments in white and brown electronic goods and consumer durable and non-durable electronic goods. However, the semiconductor fab manufacturing ecosystem, which supplies electronic circuit boards that form the basis of every electronic good, remains the holy grail for a thriving electronics industry.

The semiconductor fab ecosystem mainly comprises of ‘clean rooms’ where the environment is minutely controlled, and machines for etching, doping and dicing is expensive to build.

Keeping it in view, the GoAP brought the Semiconductor & Display Fab Policy to leverage the synergies, economies of scale, and the economic scope between the semiconductor fab plants and electronics industry. 

The policy envisaged to give subsidies to projects approved under the India Semiconductor Mission and also units not approved under that scheme but fulfill the GoAP criteria, and tailor-made incentives to mega and ultra mega projects. 

To fast track development of the sector, GoAP decided to create the following infrastructure in PPP mode with a provision for Viability Gap Funding: industrial quality clean rooms, dedicated free trade warehouse zones, industrial water supply, storm water drains, roads, uninterrupted power supply, and dormitories, conference rooms and other facilities for employees and executives. The basic objective of the policy is to create high-end direct employment over the next five to ten years.