Lok Sabha Question No. 3322 (UNSTARRED), answered on 2023-08-09
Subject: Building Semiconductor Ecosystem
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Pradyut Bordoloi

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 3322

TO BE ANSWERED ON: 09.08.2023

## BUILDING SEMICONDUCTOR ECOSYSTEM

## 3322.    SHRI PRADYUT BORDOLOI:

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

- (a) the details of the proposed Rs. 76,000 crore subsidies for building India's semiconductor ecosystem, including fund allocation to areas like semiconductor components manufacturing, display panels, specialized components and packaging/testing ICs;
- (b)  the steps and initiatives taken by the Government to support and incentivize the growth of  export-oriented  chip  design  companies  (fabless  companies)  in  India,  considering  the potential for building a world-class export industry in semiconductor design and manufacturing;
- (c) the details of the Government's plan to promote and encourage research and development in  semiconductor  technology  particularly  in  the  area  of  designing  state-of-the-art  product innovations;
- (d) whether the Government intends to support and collaborate with academic institutions and private research organisations for this purpose; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

- (a)  and  (b):  Government  is  focused  on  its  objective  of  catalysing  overall  semiconductor ecosystem to further expand India's already rapidly expanding electronics manufacturing and innovation ecosystem. Government has approved the 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  total  fiscal  outlay  of  Rs  76,000  crore  is  fungible  across different schemes under the programme.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. 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.

(c), (d) and (e): Government has initiated 'Semicon India Future Skill: Chip to Startup (C2S) Programme' to promote industry-led R&D, translational research and strengthening Industry Academia  collaboration  in  addition  to  the  'Semicon  India  Future  Design:  Design  Linked Incentive  (DLI)  Scheme'.  Further,  a  R&D  Committee  has  been  constituted  comprising  of representatives from global semiconductor Industry, Academia and Government to create a roadmap for semiconductor R&D in India.

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