Lok Sabha Question No. 148 (STARRED), answered on 2023-12-13
Subject: Self-reliance in Semiconductor Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Ravi Kishan Shukla, Ravindra Kushawaha

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA STARRED QUESTION NO. *148

TO BE ANSWERED ON: 13.12.2023

## SELF-RELIANCE IN SEMICONDUCTOR MANUFACTURING

## *148.    SHRI RAVI KISHAN: SHRI RAVINDRA KUSHWAHA:

Will  the  Minister  of  ELECTRONICS  AND  INFORMATION  TECHNOLOGYbe  pleased  to state:

- (a) the details of the measures taken to make India self-reliant in semiconductor manufacturing; and
- (b) the details of dependence with respect to semiconductors in India?

## ANSWER

MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW)

- (a) to (b):    A Statement is laid on the Table of the House.

## SATEMENT REFERRED TO IN THE REPLY TO LOK SABHA STARREDQUESTION NO.  *148  FOR  13.12.2023,  REGARDING  SELF-RELIANCE  IN  SEMICONDUCTOR MANUFACTURING

…….

- (a):    Government  is  very  focused  on  its  objective  of  building  the  overall  semiconductor ecosystem and ensure that, it in-turn catalyses India's rapidly expanding electronics manufacturing and innovation ecosystem. Government has approved Semicon India programme with  a  total  outlay  of  INR  76,000  crore  for  the  development  of  semiconductor  and  display manufacturing ecosystem in the country. The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.This will pave the way for India's growing presence in the global electronics value chains.

Following four schemes have been introduced under the aforesaid programme:

- i. ' Modified Scheme for setting up of Semiconductor Fabs in India ' for attracting large investments  for  setting  up  semiconductor  wafer  fabrication  facilities  in  the  country  to strengthen  the  electronics  manufacturing  ecosystem  and  help  establish  a  trusted  value chain. The Scheme extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fab in India.
- ii. ' Modified  Scheme  for  setting  up  of  Display  Fabs  in  India '  for  attracting  large investments  for  manufacturing  TFT  LCD  or  AMOLED  based  display  panels  in  the country  to  strengthen  the  electronics  manufacturing  ecosystem.  Scheme  extends  fiscal support  of  50%  of  Project  Cost  on pari-passu basis  for  setting  up  of  Display  Fabs  in India.
- iii. ' Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India' extends 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.
- iv. 'Semicon  India  Future  Design:  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.

Further, Government of India has also taken initiatives for Skill Development and building R&D ecosystem in the country. A Future Skill: Talent Development Committee was constituted for providing  the  recommendations  to  the  Government  for  making  India  a  global  hub  for semiconductor talent.The 'Semicon India Future Skills Talent Committee Report' submitted by the Committee was forwarded to Department of Higher Education for revisiting curriculum for semiconductors  domain.  Accordingly,All  India  Council  for  Technical  Education  (AICTE)  has launched the model curriculum for UG, Diploma, Minor Degree in Semiconductor domain on 18.02.2023 as a step towards creation of Talent pool in Semiconductor domain.

Chips to Start-up (C2S) Programme has also been initiated with an outlay of Rs 250 Crore for a duration of 5 Years. C2S Programme aims to train 85,000 number of industry-ready manpower specialized in the area of VLSI/ Chip design/ Embedded System Design and leapfrog in ESDM space by way of inculcating the culture of Chip/ System-on-Chip (SoC)/ System Level Design at B.Tech, M.Tech&  PhD  level  and  act  as catalyst for growth of Start-ups involved in semiconductor design in the country.

ChipIN Centre has also been setup at C-DAC as one-stop centre for providing access to state-ofthe-art  chip  design  infrastructure  &  fabrication  services  to  academia  and  start-ups  across  the country.

(b):      As a result of several initiatives taken by the Government and efforts of the industry, the domestic production of electronic  goods has increased substantially from  INR 1.90 lakh crore (USD  29  Billion)  in  2014-15  to  INR  8.22  lakh  crore(USD  101  Billion)  in  2022-23  at  a Compound  Annual  Growth  Rate  (CAGR) of approx.  20%.  As  a  result  of  this  growth  in electronics manufacturing sector and semiconductor being major part of all electronic products,the semiconductor market in India has also witnessed proportionate growth over the last few  years.   Under  India  Semiconductor  Mission,  the  first  semiconductor  unit  by  Micron  was approved  in  June,  2023.  Construction  of  this  unit  has  started.  Ecosystem  partners  have  also started setting up units in India.

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