Lok Sabha Question No. 3578 (UNSTARRED), answered on 2023-03-22
Subject: Import of Semiconductor Chips
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Nitesh Ganga Deb, Brijendra Singh

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 3578

TO BE ANSWERED ON: 22.03.2023

## IMPORT OF SEMICONDUCTOR CHIPS

## 3578. SHRI NITESH GANGA DEB: SHRI BRIJENDRA SINGH:

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

- (a)  whether  the  Government  has  plans  to  reduce  reliance  on  the  import  of  semiconductor chips by setting up semiconductor plants in the country and if so, the details thereof;
- (b) whether the Government has started consultation and commitments from the Governments of other countries to purchase made-in-India semiconductor chips in future and if so, the details thereof;
- (c)  whether the Government has any policies to promote the production of semiconductors and if so, the details thereof; and
- (d)the  foreign  companies  that  have  opened  or  are  in  the  process  of  opening  Chips Manufacturing centres in the country and if so, the details thereof?

## ANSWER

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

(a) and (c):  Yes Sir. 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.  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 up to 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.

- (b):      Semiconductor manufacturing ecosystem is a global ecosystem. India aims to be the part of that global ecosystem. Sale of the produced chips under the Semicon India programme willbe the business decision of the company and it is driven by the global market.
- (d):    Three  (3)  applications  have  been  received  for  setting  up  Semiconductor Fab facilities under the 'Scheme for setting up of Semiconductor Fabs in India', and Four (4) applications have been received under the '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'.  The applications received are under appraisal.

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