India, Sept. 1 -- The government on Monday reduced the support for silicon fabs from 50% to 40% while notifying the Semicon 2.0 scheme, with Union minister for IT and electronics Ashwini Vaishnaw calling the renewed support "globally competitive"-neither extraordinarily low nor high. Under the 2022 scheme -Semicon 1.0-eligible silicon fabs could receive 50% of project cost. The second edition of the scheme now provides 40% support on an equivalent basis for eligible capital expenditure.

Speaking to media on Monday, Vaishnaw said lowering the support won't be a disadvantage to the industry as it is moving at a fast pace, and several factors like ease of doing business and India's policy certainty added to the government's decision making....