Lok Sabha Question No. 4256 (UNSTARRED), answered on 2025-03-26
Subject: Expansion of Semi-conductor Manufacturing and Electronics 
Production in Andhra Pradesh
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Shri Krishna Prasad Tenneti

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 4256

TO BE ANSWERED ON: 26.03.2025

## EXPANSION OF SEMI-CONDUCTOR MANUFACTURING AND ELECTRONICS PRODUCTION IN ANDHRA PRADESH

## 4256.  SHRI KRISHNA PRASAD TENNETI:

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

- (a) the details of semi-conductor and electronics manufacturing projects approved for Andhra Pradesh  under  the  Semicon  India  Programme  including  the  planned  projects  in  Bapatla Parliamentary Constituency;

(b) the funds allocated and utilized for setting up of semi-conductor fabrication (fab) units, chip design centres or Electronic Manufacturing Clusters (EMCs) during each of the last five years;

- (c)  the  number  of  direct  and  indirect  employment  opportunities  created  through  these initiatives, State-wise especially for Andhra Pradesh; and

(d)  the  steps  taken  to  attract  private  investment  and  ensure  self-reliance  in  semi-conductor production as part of Make in India and Atmanirbhar Bharat initiatives?

## ANSWER

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

(a) and (d):     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.
5. Government has also approved modernisation of Semi-Conductor Laboratory, Mohali. Besides, MoU for cooperation in development of semiconductor ecosystem have been signed with Singapore, USA, European Union and Japan.

Under  the  Semicon  India  Programme,  Government  has  approved  five  (5)  semiconductor manufacturing projects with cumulative investment of around Rs. 1,52,000 crore. Further, 17 semiconductor  design  companies  have  been  approved  under  the  Design  Linked  Incentive Scheme  to  design chips for Indian products. Additionally,  64  semiconductor  design companies  have  been  approved  for  access  of  the  EDA  tools  made  available  under  this Scheme.

Further, Chips to Start-up (C2S) Programmeis an umbrella programme initiated to generate 85,000  industry-ready  manpower  specialized  in  semiconductor  chip  design,  VLSI  (Very Large-Scale Integration) and embedded system design areas. Under C2S Programme, 4 R&D Projects have been approved in the State of Andhra Pradesh (AP). Further 12 institutions in the state of AP have been provided access to the EDA tools under this Programme.

In addition to Semicon India Programme, Government has introduced several schemes such as, Production linked incentive (PLI) scheme for Large Scale Electronics Manufacturing, PLI for  IT  Hardware,  Electronics  Manufacturing  Clusters  Scheme,  Scheme  for  Promotion  of Manufacturing  of  Electronic  Components  and  Semiconductors  (SPECS)  and  Modified Special Incentive Package Scheme (M-SIPS) to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country.

Under these initiatives,  27  companies  under  PLI  for  IT  Hardware  (including  1  in  AP),  32 companies under PLI Large Scale Electronics Manufacturing (including 2 in AP), 28 clusters and 4 Common Facility Centers (CFCs) under Electronics Manufacturing Clusters Scheme (including 4 in AP), 313 companies under MSIPS (including 9 in AP) have been approved.

(b): Government has approved Semicon India programme with a total outlay of Rs 76,000 crore which includes Rs 1,000 crore outlay for Design Linked Incentive (DLI) Scheme; out of  which  more  than  Rs  60,000  crore  has  already  been  committed  to  the  5  semiconductor manufacturing projects and more than Rs 200 crore has been committed to 17 Semiconductor design companies approved under DLI. The Electronics Manufacturing Cluster Schemes of the Ministry of Electronics and IT have a total outlay of Rs 5,232 crore, out of which approx. Rs 3,400 crore has been committed for EMCs in various states.

(c): The aforesaid companies approved under various schemes for promoting electronics manufacturing,  have  already  created  more  than  6  Lakh  job  opportunities.  Further,  the approved 5 semiconductor manufacturing projects are expected to generate more than 26,000 direct  job  opportunities  depending  on  the  maturity  of  factory  automation.  These  units  are expected to have a cascading effect on employment generation in the other sectors and the supply chain down the line.

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