India’s Andhra Pradesh Introduces Semiconductor Incentives Policy
Andhra Pradesh’s new Semiconductor & Display Fab Policy 2024-2029 is now in effect
The Andhra Pradesh government has introduced the Semiconductor & Display Fab Policy 2024-29, which aims to attract investments in semiconductor and display manufacturing. It also covers related sectors like Outsourced Assembly & Testing (OSAT) and assembly, Testing, Marking, and Packing (ATMP).
SNAPSHOT
Incentives for companies engaged in semiconductor and display fabrication manufacturing in Andhra Pradesh, India.
Incentives include 50% central subsidy and 30% state subsidy to attract investments.
Customized benefits for mega and ultra-mega semiconductor projects.
The policy is effective for five years, starting from November 14, 2024.
PROGRAM BENEFITS
The overall incentive a company can claim, through the combination of incentive packages offered through this policy or any subsequent policies, shall not exceed 75% of the eligible fixed capital investment (EFCI) in the state of Andhra Pradesh:
Capital subsidy in the range of 20-25 % of Eligible Fixed Capital Investment (EFCI)
Projects showing a higher employment-to-investment (E/I) ratio will be incentivized additional 5% of Capital subsidy of EFCI
Additional 5% of Capital Subsidy of EFCI upon attaining value addition.
Power Cost Reimbursement
Net State and Goods Services Tax (SGST) Reimbursement
Stamp Duty Reimbursement
Recruitment Assistance
ELIGIBILITY REQUIREMENTS
This policy shall be applicable to the following categories of enterprise(s) and investment(s) in Andhra Pradesh:
New and existing enterprises investing and establishing new units.
Existing enterprises investing in expansion.
With minimum fixed capital investment range from >50 – 200 (INR Crores)
Investment in semiconductor and display fabrication sector and other targeted subsectors.
CONNECT WITH THE HICKEY’S INCENTIVES TEAM
The Hickey & Associates incentives team has advised companies throughout India and in the semiconductor sector. Additional details on the new policy are available from the Andhra Pradesh government website. Contact us for more specifics, including eligibility criteria, application details, and funding requirements. If you’d like our support throughout the application process, we are here to help!