Lok Sabha Question No. 4462 (UNSTARRED), answered on 2022-03-30
Subject: Development of Semiconductor
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Pradeep Kumar Singh, Sudhakar Tukaram Shrangre

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 4462

TO BE ANSWERED ON: 30.03.2022

## DEVELOPMENT OF SEMICONDUCTOR

## 4462.   SHRI PRADEEP KUMAR SINGH:

## SHRI SUDHAKAR TUKARAM SHRANGARE:

Will  the  Minister  of  ELECTRONICS  AND  INFORMATION  TECHNOLOGY  be  pleased  to  state  that  the details  of  the  amount  of  investment  envisaged  under  the  scheme  for  the  development  of  sustainable semiconductor and display ecosystem in the country and the amount of funds earmarked for the same?

## ANSWER

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

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. The participating companies are expected to make direct investments to the tune of ₹1,67,000 crore over next 6 years.

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  Semi-Conductor Laboratory, Mohali as a brownfield Fab.