Lok Sabha Question No. 3055 (UNSTARRED), answered on 2025-03-19
Subject: Progress on Domestic Semiconductor Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Adv. Adoor Prakash

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION. NO. 3055

TO BE ANSWERED ON: 19.03.2025

## PROGRESS ON DOMESTIC SEMICONDUCTOR MANUFACTURING

## 3055. ADV. ADOOR PRAKASH:

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

- (a) the progress made in establishing domestic semiconductor manufacturing plants;
- (b) the status of projects approved under the semiconductor manufacturing incentive scheme along with the expected timelines for its operationalization;
- (c)  the  steps  being  taken  by  the  Government  to  address  challenges  in  semiconductor production such as skilled workforce shortages and supply chain constraints; and (d) the impact of global trade restrictions on India's semiconductor manufacturing sector?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a)  and  (b):Government  has  approved  Semicon  India  programme  with  a total  outlay  of  Rs 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country,which provides:

- i. Fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon Complementary Metal-Oxide-Semiconductor (CMOS) based Semiconductor Fabs in India.
- ii. Fiscal support of 50% of Project Cost on pari-passu basis  for  setting  up  of  Display Fabs in India.
- iii. Fiscal support of 50% of the Capital Expenditure on pari-passu basis for setting up of Compound  Semiconductors  /  Silicon  Photonics  (SiPh)  /  Sensors  (including  MicroElectro-Mechanical  Systems)  Fab/  Discrete  Semiconductor  Fab  and  Semiconductor Assembly,  Testing,  Marking  and  Packaging  (ATMP)  /  Outsourced  Semiconductor Assembly and Test (OSAT) facilities in India.
- iv. Product Design Linked Incentive of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and also 'Deployment Linked Incentive' of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application for incentivising chip design.

Government  has  approved  five  (5)  semiconductor  manufacturing  projects  with  cumulative investment  of  around  Rs.  1,52,000crore  under  the  programme.  The  approved  projects  are under  various  phases  of  implementation  and  are  expected  to  be  completed  in  4-6  year timeframe.

(c):Following  measures  have  been  taken  by  the  Government  for  development  of  skilled manpower:

1. All  India  Council  for  Technical  Education  (AICTE)  has  launched  the  new curriculum for B. Tech in Electronics Engineering (Very Large-Scale Integration (VLSI) Design and Technology), Diploma in Integrated Circuit (IC) manufacturing and Minor Degree in Electronics Engineering (VLSI Design and Technology), as a step towards creation of Talent pool in Semiconductor domain.
2. Government has launched the Chips to Startup ('C2S') programme which plans to train 85,000 industry ready workforce at about 113 participating institutions in VLSI  and  Embedded  System  Design.  More  than  43,000  engineering  students have been onboarded for training at 113 organizations under C2S Programme till date.
3. A Skilled Manpower Advanced Research and Training (SMART) Lab has been setup in NIELIT Calicut in 2022 with an aim to train one lakh engineers nationwide within 5 years in VLSI and Embedded System design. More than 42,000 engineers have been trained nationwide using the SMART Lab.
4. Further,  the  following  collaborations/  partnerships  have  been  entered  into  by India Semiconductor Mission (ISM) to encourage skill development:
5. (i) MoU between ISM with IISc and Lam Research: To train ~60,000 Indian engineers  in  the  upcoming  10  years  through  Lam  Research's  Semiverse platform.
6. (ii) MoU between ISM and IBM:  To facilitate Indian students/professionals to build a broad skill base by gaining access to laboratories and research focal centers and establishing internship and fellowship programs.
7. (iii) MoU between ISM with Purdue University: To promote the cutting-edge research and development and commercialization thereof, curating skilled talent  pool  and  investment  opportunities  in  India  enabling  the  Indian professionals  to  explore  their  potential  in  the  semiconductor  and  display space.

(d):  Semiconductor  chips  are  freely  traded  amongst  the  member  countries  of  Information Technology Agreement-1 (ITA-1) of World Trade Organization. India is also a signatory to the ITA-1 which covers the semiconductors.

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