Pari passu support

Pari passu means side by side, in equal step. Applied to a government incentive, pari passu support is paid in proportion to the capital the applicant itself spends, as it spends it, rather than as an advance. Semicon 2.0, the scheme for the semiconductor design and manufacturing ecosystem notified by the Ministry of Electronics and Information Technology on 31 August 2026, pays its fiscal support on this basis.

The rate depends on the facility: 40 per cent of eligible capital expenditure for a silicon wafer fab, 35 per cent for compound, display and advanced packaging fabs, 25 per cent for legacy packaging and 30 per cent for research facilities and equipment. None of it is available until the applicant clears the minimum capital, minimum revenue and technology conditions for its category, and because the support follows spending, the applicant funds each stage first. The figures are stated as at 31 August 2026.