Lok Sabha Question No. 276 (UNSTARRED), answered on 2024-11-27
Subject: Semiconductor Manufacturing Ecosystem
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Bhola Singh, Shri Dineshbhai Makwana, Shri Parbhubhai Nagarbhai Vasava, Shri Parshottambhai Rupala

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 276

TO BE ANSWERED ON: 27.11.2024

## SEMICONDUCTOR MANUFACTURING ECOSYSTEM

## 276. DR. BHOLA SINGH: SHRI DINESHBHAI MAKWANA: SHRI PARBHUBHAI NAGARBHAI VASAVA: SHRI PARSHOTTAMBHAI RUPALA:

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

(a)  the  specific  measures  taken  by  the  Government  to  enhance  India's  semiconductor manufacturing  ecosystem  including  initiatives  to  attract  investment  and  promote  local production;

(b) the partnerships or collaborations established with international companies or organizations to support semiconductor manufacturing;

- (c)  the incentives provided for research and development in semiconductor technology; and

(d)  the progress made in achieving self-reliance in semiconductor production and the future goals set by the Ministry in this regard?

## ANSWER

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

(a): 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 for:

1.      Setting up of Semiconductor Fabs in India which provides for a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon  CMOS  based Semiconductor Fabs in India.
1. Setting  up  of  Display  Fabs  in  India  which  provides  for  a  fiscal  support  of  50%  of Project Cost on pari-passu basis for setting up of Display Fabs in India.
2. Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors  Fab  and  Semiconductor  Assembly,  Testing,  Marking  and  Packaging (ATMP) / OSAT facilities in India which provides for a fiscal support of 50% of the Capital Expenditure on pari-passu basis for setting up of Compound Semiconductors / Silicon  Photonics  (SiPh)  /  Sensors  (including  MEMS)  Fab/  Discrete  Semiconductor Fab and Semiconductor ATMP / OSAT facilities in India.
3. Providing incentives on design through 'Design Linked Incentive (DLI) Scheme' which provides '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.

Government  has  also  approved  modernisation  of  Semi-Conductor  Laboratory,  Mohali  to enhance efficiency and cycle time.

- (b): To further support semiconductor manufacturing and creating a semiconductor ecosystem in the country, Government has entered in Memorandum of Understanding (MoU) with USA, European Union, Japan and Singapore.

Further,  Government  is  also  actively  working  in  collaboration  with  world  class  players  in semiconductor  ecosystem.  Applied  Materials  has  announced  to  set  up  a  collaborative engineering centre in Bengaluru with an investment of 400 million dollarsover 4 years. As part of this,  India Validation Centre has already been set up in Bengaluru by AMAT. This engineering  centre  is  focused  on  development  and  commercialisation  of  technologies  for semiconductor manufacturing equipment.

India Semiconductor Mission (ISM) has also entered in to an MoU with LAM Research for skilling of engineers in semiconductor manufacturing.

AMD has established its largest global design center, AMD Technostar, in Bengaluru. This centre is focused on the design and development of semiconductor technology including 3D stacking, artificial intelligence, and machine learning.

- (c): Under the Semicon India Programme, up to 2.5% of the outlay of the scheme has been earmarked for meeting the R&D, skill development and training requirement.
- (d): India  is  well  on  its  path  to  create  a  robust  semiconductor  ecosystem  in  the  country. Presently, India is already one of the most  important players in the designing of semiconductor chips and provides for almost 20% of design engineers (Industry reports).

Government  has  approved  five  (5)semiconductor  projects  with  cumulative  investment  of around Rs. 1 lakh 52 thousand crore.Further,15 semiconductor design companies have also been  approved  under  the  Design  Linked  Incentive  Scheme  to  design  chips  for  Indian products. Additionally, 41 semiconductor design companies have been approved for access of the tools required for designing the chips (called EDA tools)which is being made available by National EDA Tool Grid setup at ChipIN Centre at C-DAC Bengaluru.

To  create  the  skilled  manpower  for  chip  design,  Government  has  launched  the  Chips  to Startup ('C2S') programme which plans to train 85 thousand specialized workforce at about 113 participating institutions in VLSI and Embedded System Design.

Further, Government has been implementing following programs focused on development of electronics manufacturing:

- (i) Production Linked Incentive (PLI) Scheme for Large Scale Electronics : So far,incremental investment of Rs 9,349 Crores had been made under this PLI scheme. This has led to production of more than Rs 6 LakhCrores.
- (ii) PLI scheme for IT hardware: So far, incremental investment of Rs 501 Crores has been made under this PLI scheme. This has led to production of more than Rs 10,245 Crores.

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