Lok Sabha Question No. 3463 (UNSTARRED), answered on 2023-03-22
Subject: Semiconductor Industry
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Chandra Sekhar Bellana

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 3463

TO BE ANSWERED ON: 22.03.2023

## SEMICONDUCTOR INDUSTRY

## 3463. SHRI CHANDRA SEKHAR BELLANA:

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

- (a) whether the Government has provided the required fiscal support to increase manufacturing capacities in the potentially rich semiconductor industry;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has taken steps to deal with lack of fabrication (fab) capacities in the semiconductor industry; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a), (b), (c) and (d):  Government is very focused on its important objective of building the overall  semiconductor  ecosystem  and  ensure  that,  it  in-turn  catalyses India's rapidly expanding electronics  manufacturing  and  innovation  ecosystem.  Government  has  approved the Semicon India programme with a total outlay of INR 76,000 crore for the development of semiconductor  and  display  manufacturing  ecosystem  in  the  country.  The  programme  has further  been  modified  in  view  of  the  aggressive  incentives  offered  by  countries  already having established semiconductor ecosystem and limited number of companies owning the advanced node technologies. The modified programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem. This will serve to pave the way for India's growing presence in the global electronics value chains. Following four schemes have been introduced under the aforesaid programme:

- i. ' Modified Scheme for setting up of Semiconductor Fabs in India '  for  attracting large  investments  for  setting  up  semiconductor  wafer  fabrication  facilities  in  the country  to  strengthen  the  electronics  manufacturing  ecosystem  and  help  establish  a trusted value chain. The Scheme extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fab in India.
- ii. ' Modified  Scheme  for  setting  up  of  Display  Fabs  in  India '  for  attracting  large investments  for  manufacturing  TFT  LCD  or  AMOLED based display panels  in  the country to strengthen the electronics manufacturing ecosystem. Scheme extends fiscal support of 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.
- iii. ' Modified  Scheme  for  setting  up  of  Compound  Semiconductors  /  Silicon Photonics  /  Sensors  Fab  /  Discrete  Semiconductors  Fab  and  Semiconductor Assembly,  Testing,  Marking  and  Packaging  (ATMP)  /  OSAT  facilities  in India' shall extends a fiscal support of 50% of the Capital Expenditure on Pari-passu basis for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors

(including  MEMS)  Fab/  Discrete  Semiconductor  Fab  and  Semiconductor  ATMP  / OSAT facilities in India.

- iv. 'Semicon  India  Future  Design:  Design  Linked  Incentive  (DLI)  Scheme' offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets,  System  on  Chips  (SoCs),  Systems  &  IP  Cores  and  semiconductor  linked design. The scheme provides 'Product Design Linked Incentive' of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and 'Deployment  Linked  Incentive'  of  6%  to  4%  of  net  sales  turnover  over  5  years subject to a ceiling of ₹30 Crore per application. \

In  addition  to  the  above  schemes,  Government  has  also  approved  modernisation  of  SemiConductor Laboratory, Mohali as a brownfield Fab.

India  Semiconductor  Mission  (ISM)  has  been  set  up  as  an  Independent  Business  Division within  Digital  India  Corporation  having  administrative  and  financial  autonomy  to  drive India's strategies for developing semiconductors and display manufacturing ecosystem. ISM serves as the nodal agency for efficient, coherent and smooth implementation of the schemes.

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