Lok Sabha Question No. 2427 (UNSTARRED), answered on 2022-12-21
Subject: Indian Semiconductor Mission (ISM)
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Rita Bahuguna Joshi, Sujay Radhakrishna Vikhepatil, Shrikant Eknath Shinde, Heena Vijaykumar Gavit, Unmesh Bhaiyyasaheb Patil, Krishna Pal Singh Yadav

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 2427

TO BE ANSWERED ON: 21.12.2022

## INDIAN SEMICONDUCTOR MISSION  (ISM)

## 2427.  PROF. RITA BAHUGUNA JOSHI:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

DR. SHRIKANT EKNATH SHINDE:

DR. HEENA GAVIT:

SHRI UNMESH BHAIYYASAHEB PATIL:

DR. KRISHNA PAL SINGH YADAV:

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

- (a) whether the Government has established Indian Semiconductor Mission (ISM) and if so, the details thereof along with its aims and objectives;
- (b) whether ISM has been able to achieve the objective for which it was established and if so, the details thereof;
- (c) the amount released by the Government for ISM; and
- (d) the steps taken by the Government to make India a global leader in the manufacturing, innovation and design of semiconductors?

## ANSWER

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

(a):  Yes, Sir. India Semiconductor Mission (ISM) has been setup as an Independent Business Division  within  Digital  India  Corporation.  ISM  has  all  the  administrative  and  financial powers and is tasked with the responsibility of catalysing the India Semiconductor ecosystem in manufacturing, packaging and design. ISM has an advisory board consisting of some of the leading global experts in the field of semiconductors. ISM is serving as the nodal agency for efficient,  coherent  and  smooth  implementation  of  the  programme  for  development  of semiconductor and manufacturing ecosystem in India.

## Objectives of ISM are as under:

- i. Formulate a comprehensive long-term strategy for developing sustainable semiconductors and display manufacturing facilities and semiconductor design ecosystem in the country in consultation with the Government ministries / departments / agencies, industry, and academia.
- ii. Facilitate the adoption of secure microelectronics and developing trusted semiconductor supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment.
- iii. Enable  a  multi-fold  growth  of  Indian  semiconductor  design  industry  by  providing requisite support in the form of Electronic Design Automation (EDA) tools, foundry services and other suitable mechanisms for early-stage startups.
- iv. Promote and facilitate indigenous Intellectual Property (IP) generation.
- v. Encourage, enable and incentivize Transfer of Technologies (ToT).
- vi. Establish suitable mechanisms to harness economies of scale in Indian semiconductor and display industry.
- vii. Enable  cutting-edge  research  in  semiconductors  and  display  industry  including evolutionary and revolutionary technologies through grants, global collaborations and other mechanisms in academia / research institutions, industry, and through establishing Centres of Excellence (CoEs).
- viii. Enable  collaborations  and  partnership  programs  with  national  and  international agencies, industries and institutions for catalyzing collaborative research, commercialization and skill development.
9. (b):   ISM has been working as nodal agency for the Schemes approved under Semicon India Programme. The applications were received by ISM and are being appraised by ISM. ISM has also been engaging with various stakeholders of Semiconductors and Display ecosystem to attract the investments in India.
10. (c):      So far, INR 13 crore has been released to ISM.
11. (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.