Lok Sabha Question No. 4529 (UNSTARRED), answered on 2022-03-30
Subject: Production of Micro Chips and Semiconductor
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Nitesh Ganga Deb

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 4529

TO BE ANSWERED ON: 30.03.2022

## PRODUCTION OF MICRO CHIPS AND SEMICONDUCTOR

## 4529.   SHRI NITESH GANGA DEB:

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

- (a)    whether  the  Government  has  invited  foreign  companies  to  start  production  of  Micro  Chips  and Semiconductor in the country; and
- (b)  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.
- (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:
-  28nm or Lower - Up to 50% of the Project Cost
-  Above 28 nm to 45nm - Up to 40% of the Project Cost
-  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.

Government  of  India  is  regularly  encouraging  investments  by  Global  Semiconductor  companies  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.

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