Lok Sabha Question No. 3335 (UNSTARRED), answered on 2022-03-23
Subject: India Semi conductor Mission
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Vishnu Dayal Ram

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 3335

TO BE ANSWERED ON: 23.03.2022

## INDIA SEMI CONDUCTOR MISSION

## 3335. SHRI VISHNU DAYAL RAM:

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

- (a) the details of the India Semiconductor Mission;
- (b) the details regarding the schemes under the above said Mission, including the allocation for each of the schemes;
- (c)  the  manner  in  which  India  Semiconductor  Mission  will  improve  India's  manufacturing capacity?

## ANSWER

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

(a):  Government  is  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  AtmaNirbharta  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.

India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India's long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design 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.

(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.
- 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  SemiConductor Laboratory, Mohali as a brownfield Fab.

The total  fiscal  outlay  of  the  proposed  schemes  is  INR  76,000  crore  which  is  fungible  across different schemes.

- (c):  The Vision of ISM is to build a vibrant semiconductor and display design and innovation ecosystem to enable India's emergence as a global hub for electronics manufacturing and design. India  Semiconductor  Mission  (ISM)  is  of  paramount  importance  to  organize  efforts  for promoting semiconductors and display industry in a more structured, focused, and comprehensive  manner.  It  will  formulate  a  comprehensive  long-term  strategy  for  developing semiconductors & display manufacturing facilities and semiconductor design ecosystem in the country  in  consultation  with  Government  ministries  /  departments  /  agencies,  industry,  and academia. It will facilitate the adoption of trusted electronics through secure semiconductors and display  supply  chain,  including  raw  materials,  specialty  chemicals,  gases,  and  manufacturing equipment.  It  will  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. It will also promote and facilitate indigenous Intellectual Property (IP) generation and encourage, enable and incentivize Transfer

of  Technologies  (ToT).  ISM  will  also  enable  collaborations  and  partnership  programs  with national  and  international  agencies,  industries  and  institutions  for  catalyzing  collaborative research, commercialization and skill development.

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