Lok Sabha Question No. 3468 (UNSTARRED), answered on 2019-01-02
Subject: Electronic Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: DEVUSINH JESINGBHAI CHAUHAN

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 3468

TO BE ANSWERED ON: 02.01.2019

## ELECTRONIC MANUFACTURING

## 3468.     SHRI  DEVUSINH  CHAUHAN:

Will  the  Minister  of  ELECTRONICS  AND  INFORMATION  TECHNOLOGY  be  pleased  to state:

- (a)   whether the Government is planning to set-up second clip fabrication facility in Gujarat;
- (b)   if so, the details thereof; and if not, the reasons therefor;
- (c)    whether Gujarat is also suitable for manufacturing of analog integrated circuits/ solar photo voltaic cells and wafers; and
- (d)   if so, the steps being taken to utilise its potential?

## ANSWER

## MINISTER OF STATE FOR   ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI S.S.AHLUWALIA)

(a) and (b):  Government had approved two proposals for setting up of Semiconductor Wafer Fabrication (FAB) facility in India for chip manufacturing - one from the consortium led by M/s.  HSMC  Technologies  India  Pvt.  Ltd.  and  the  other  from  consortium  led  by  M/s. Jaiprakash Associates  Ltd.  Letter of  Intent  (LoI)  dated  19.03.2014  were  issued  to  both  the consortia. The consortium led by M/s. HSMC Technologies India Pvt. Ltd., intended to setup the FAB facility in Gujarat, and the consortium led by M/s. Jaiprakash Associates Ltd., in Uttar Pradesh. As per the LoI, both the consortia were required to submit the documents for demonstration  of  commitment.  The  consortium  led  by  M/s.  Jaiprakash  Associates  Ltd., withdrew the proposal, whereas the consortium led by M/s. HSMC Technologies India Pvt. Ltd.  could  not  submit  the  requisite  documents  as  per  the  LoI,  despite  being  provided extension of time on multiple occasions. Therefore, the Government, on the recommendation of the Empowered  Committed (EC) constituted for the purpose of setting up of Semiconductor Wafer Fabrication (FAB) manufacturing facilities in the country,  cancelled the  LoI  issued  to  the  consortium  led  by  M/s.  HSMC  Technologies  India  Pvt.  Ltd.  on 20.04.2018.

(c)  and  (d):  The  Government  attaches  high  priority  to  electronics  hardware  manufacturing and  is  promoting  electronics  manufacturing  through  various  schemes  and  incentives.  One project for setting up of a 1.2 GW Solar Photovoltaic Modules manufacturing facility with backward integration till  Solar  Cells  and  Wafer  manufacturing has  been  recommended  for incentives under the Modified Special Incentive Package Scheme (M-SIPS). The project is located at Adani Ports Special Economic Zone (APSEZ), Gujurat, with proposed investment of Rs.4,837 crore. The project is being implemented by M/s. Mundra Solar PV Limited, in three phases, with an investment of Rs.2,107 crore in the first phase.

Government of Gujarat has informed that it is willing to support any investor intending to set up  chip  fabrication  facility.  However,  considering  the  investment  required  and  technology intensive nature of the industry, the Government of Gujarat does not intend to do it by itself. ******