SPECS

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) aims to strengthen the domestic manufacturing of electronic components and semiconductors.

Development of supply chain is essential for the manufacturing of electronic products with higher domestic value addition. This will minimize the dependency on imports for various categories of components and sub-assemblies.

The Scheme is available to investments made for manufacturing products under the following Target Segments, categorised as category A, B, C and D:

A. Sub-assemblies

B. Bare components

C. Selected bare components

D. Supply chain ecosystem and capital equipment

The components in this scheme include display modules, sub-assembly camera modules, printed circuit board assemblies, lithium cell enclosures, resistors, capacitors and ferrites.

The Scheme offers three types of incentives for a period of 6 years from FY 2025-26:

  1. Turnover-linked incentive: A percentage of incremental sales over base year, Up to 10% for eligible segments like multi-layer PCBs, camera modules, Li-ion cells, etc.
  2. Capex-linked incentive: A percentage of eligible capital investment, Up to 25% for capital goods, supply chain subassemblies, and selected bare components.
  3. Hybrid incentive: Combination of both turnover and capex incentives, Combination of turnover and capex support, with a strong link to job creation.

To match with the above Cente Government Scheme, Tamil Nadu, Gujarat, Uttar Pradesh also announcing the matching incentives by formulating the State Policy.

This is a transformative moment for the Electronics Component Manufacturing sector that will propel India onto the global stage as a powerhouse of innovation and production.