Lok Sabha Question No. 1267 (UNSTARRED), answered on 2022-02-09
Subject: Semi-conductor Mission
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Kirit Premjibhai Solanki

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 1267

TO BE ANSWERED ON: 09.02.2022

## SEMI-CONDUCTOR MISSION

## 1267. DR. (PROF.) KIRIT PREMJIBHAI SOLANKI:

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

- (a) whether the Government is planning to create a semi-conductor mission for India;
- (b) if so, the details thereof including the time by which its manufacturing is anticipated;
- (c)  whether  the  Government  is  considering  to  work  in  coordination  with  QUAD  Partners  for streamlining supply-chain of semi-conductors; and
- (d) if so, the details thereof and the role of India in aforesaid initiative?

## ANSWER

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

(a) :  Yes,  Sir.  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.

- (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  SemiConductor Laboratory, Mohali as a brownfield Fab.

Cabinet  approval  is  also  granted  for setting  up  of  India  Semiconductor  Mission  (ISM)  as  an Independent  Business  Division  within  Digital  India  Corporation  having  administrative  and financial  autonomy  to  drive  India's  strategies  for  developing  semiconductors  and  display manufacturing  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.

(c):  Yes,  Sir.  Government  is  closely  working  with  other  countries  for  collaboration  on technology  partnership,  collaborative  research,  building  a  talent  pipeline,  building  a  Trusted Supply  Chain,  demand  aggregation,  infrastructure  development,  trust  diplomacy  and  other supporting frameworks of the growing digital and technology ecosystem.

(d):  One of the goals of the Digital India programme is for India and Indian entrepreneurs to create global leaderships in many of the emerging technology areas that will impact and drive the future of technology services and products for consumers/ enterprises and governments for the world.

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