Lok Sabha Question No. 5541 (UNSTARRED), answered on 2022-04-06
Subject: Wafer Fabrication Plant
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Kotagiri Sridhar, Chinta Anuradha

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 5541

TO BE ANSWERED ON: 06.04.2022

## WAFER FABRICATION PLANT

## 5541. SHRI SRIDHAR KOTAGIRI: SHRIMATI CHINTA ANURADHA:

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

(a)  whether the Government has undertaken any measures to develop an operational wafer fabrication plant in India;

- (b)  if so, the details thereof and if not, the reasons therefor;

(c)  whether  the  Government  is  considering  to  incentivize  private  players  to  enter  the semiconductor segment considering the high costs involved in indigenous production and the high efficiency required in the production ecosystem;

- (d)  if so, the details thereof and if not, the reasons therefor;

(e)  whether  the  Government  has  developed  any  plan  which  would  sustain  its  import dependence for semiconductors to become atmanirbhar in this regard considering the global shortage of semiconductors following the pandemic; and

- (f)  if so, the details thereof?

## ANSWER

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

(a):  Yes, Sir. 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.  The  vision  of  Atmanirbhar  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.

(b):   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.

- i. 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.
- ii. 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.

(c) and  (d): Government  of  India  is regularly  encouraging  investments  by  Global Semiconductor companies under Semicon India Programme for setting up of Semiconductor Fab units in India directly or through joint venture with Indian manufacturers. Setting up of Semiconductor  unit  requires  huge  investments  and  necessitates  suitable  infrastructure  like availability  of  uninterrupted  Power  and  Clean  Water.  Global  companies  are  evaluating  the possibility to set up facilities in India.

(e)  and (f):    Government of India 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 our country. This will serve to pave the way for India's growing presence in the global  electronics  value  chains  and  will  substantially  increase  domestic  value  addition  in electronics manufacturing in the country. It will help in reduction of imports, ramp up exports and integrate Indian electronic manufacturing ecosystem with the global supply chains. The Programme  also  aims  to  achieve  significant  indigenization  in  semiconductor  products/ systems  and  IP  cores  deployed  in  the  country,  thereby  facilitating  import  substitution  and value addition in strategic, social & financial sectors.

*******