Lok Sabha Question No. 984 (UNSTARRED), answered on 2022-02-08
Subject: Semi-Conductor Industrial Policy
Ministry: HEAVY INDUSTRIES
Asked by: Su Thirunavukkarasar

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 984

ANSWERED ON 08.02.2022

## SEMI-CONDUCTOR INDUSTRIAL POLICY

## 984. SHRI THIRUNAVUKKARASAR SU:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) whether the Government has announced Semi-Conductor Industrial Policy;
- (b) if  so,  the  details  thereof  along  with  the  estimated  cost  and  features  of  the  project thereof; and
- (c) the time by which the new policy is likely to be implemented and the extent to which the new policy would promote employment opportunities in the country?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI KRISHAN PAL GURJAR)

(a) & (c): As  per the information received from  the Ministry of Electronics  and Information  Technology,  the  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.  This  vision  of Aatmanirbhar Bharat in electronics  & semiconductors was given further momentum by the Union  Cabinet  chaired  by  the  Hon'ble  Prime  Minister  approving  the  Semicon  India programme with a total outlay of INR 76,000 crore for the development of semiconductor and display manufacturing ecosystem in our country.  The 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. Scheme for setting up of Semiconductor Fabs in India provides fiscal support to eligible applicants for setting up of Semiconductor Fabs which is aimed at attracting large  investments  for  setting  up  semiconductor  wafer  fabrication  facilities  in  the country.  Following fiscal support has been approved under the scheme:
2.  28nm or Lower - Up to 50% of the Project Cost
3.  Above 28 nm to 45nm - Up to 40% of the Project Cost
4.  Above 45 nm to 65nm - Up to 30% of the Project Cost

- ii. Scheme for setting up of Display Fabs in India provides fiscal support to eligible applicants for setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country. The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab.
- iii. Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India: The Scheme provides a fiscal support of 30% of the Capital Expenditure to the eligible applicants for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India.
- iv. 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 Semi-Conductor Laboratory, Mohali as a brownfield Fab.  Further, approval was also granted for the setting up of India Semiconductor Mission (ISM) 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. Envisioned to be led by global experts in the Semiconductor and Display industry, ISM will serve as the nodal agency for efficient, coherent and smooth implementation of the schemes.

The  Schemes  have  been  notified  on  21.12.2021  and  are  currently  available  for receiving  applications  from  the  eligible  applicants.    Semiconductor  industry  is  knowledge intensive  and  requires  highly  skilled  manpower.  Semicon  India  programme  shall  promote skilling for semiconductors related employment at all levels.

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