Lok Sabha Question No. 4515 (UNSTARRED), answered on 2022-03-30
Subject: Modernisation and Upgradation of Pre-existing SCL
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: P.P. Chaudhary, Rajendra Agrawal

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 4515

TO BE ANSWERED ON: 30.03.2022

## MODERNISATION AND UPGRADATION OF PRE-EXISTING SCL

## 4515.   SHRI P.P.CHAUDHARY: SHRI RAJENDRA AGRAWAL:

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

- (a) the details of the initiatives taken up by the Government under India Semiconductor Mission to make India a manufacturing hub for Semiconductors;
- (b) the details of the steps taken up by the Government for modernisation and upgradation of preexisting Semiconductor Laboratory (SCL);
- (c)  the  details  of  the  amount  of  expenditure  to  be  incurred  for  setting  up  of  Compound semiconductors and Semiconductor ATMP/OSAT facilities in the country;
- (d)  the details of the locations that have been identified for setting up of the aforesaid facilities;
- (e) whether the Government is planning to set up any aforesaid facility in the state of Rajasthan; and
- (f)  if so, the details thereof?

## ANSWER

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

(a): 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.

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  order  to  drive  the  long-term  strategies  for  developing  a  sustainable  semiconductors  and display  ecosystem,  a  specialized  and  independent  'India  Semiconductor  Mission  (ISM)'  has been set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes for setting up of Semiconductor and Display Fabs.

- (b):    Government  has  approved  for  modernization  and  commercialization  of  Semi-conductor Laboratory (SCL), Mohali. SCL, has been brought under the administrative control of Ministry of Electronics and Information Technology for exploring the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.
- (c):    The  Semicon  India  Programme  also  includes  the  Scheme  for  setting  up  of  Compound Semiconductors  /  Silicon  Photonics  /  Sensors  Fab  and  Semiconductor  Assembly,  Testing, Marking  and  Packaging  (ATMP)  /  OSAT  facilities  in  India.  The  total  fiscal  outlay  of  the theSemicon India Programme is upto ₹76,000 crore (Rupees Seventy-Six Thousand Crore Only). The  distribution  of  incentives  among  various  schemes  is  fungible  across  different  schemes,

including the  scheme for setting up of Compound  semiconductors  and  Semiconductor ATMP/OSAT facilities in the country.

(d),  (e)  and  (f):  States  such  as  Karnataka,  Telangana,  Tamil  Nadu,  Andhra  Pradesh,  Madhya Pradesh, Odisha, Tripura, Punjab and UT of Dadra and Nagar Haveli and Daman & Diu have shown interest  in  facilitating  setting  up  of  semiconductor  chip  manufacturing  facilities.  These States have also indicated the availability of stable power supply and sufficient water supply for chip manufacturing facilities. However, the decision regarding the location of chip manufacturing facility lies with companies proposing to setup such facilities based on various other parameters including availability of stable power supply and sufficient water supply.

*******