Govt not keen to cover land, tech transfer costs in new chips scheme

The Union government has signalled that it is unlikely to pay land-acquisition and technology-transfer expenses for new semiconductor plants under its revised chip incentive framework. The decision matters because semiconductor projects are capital-intensive, and the allocation of upfront costs will shape how quickly new plants move from announcement to execution.

According to the policy position described in the Union government’s semiconductor incentive framework, States are expected to shoulder the land-related burden, while the Centre is considering support for other parts of the semiconductor ecosystem. The policy direction suggests a narrower fiscal commitment from the Union government than earlier expectations that the Centre might share a larger part of project costs.