Lok Sabha Question No. 708 (UNSTARRED), answered on 2024-02-07
Subject: MoU between India and EU
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO.708

TO BE ANSWERED ON: 07.02.2024

## MOU BETWEEN INDIA AND EU

## 708. SHRI DAYANIDHI MARAN:

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

- (a) the  details  of  the  objectives  of  the  Memorandum  of  Understanding  (MoU)  signed between India and the European Union regarding semiconductor research and innovation;
- (b) the details of the States which have been identified for the development of semiconductor manufacturing projects along with selection criteria and reasons thereto;
- (c) the steps taken/being taken by the Government to ensure the effective implementation of the MoU and how does this agreement fit into the broader efforts of the Ministry of Electronics  and  Information  Technology  to  foster  a  conducive  environment  for electronics manufacturing in the country;
- (d) whether the MoU align with India's broader strategy for technological advancement and global collaboration in the semiconductor industry and if so, the details thereof; and
- (e) the  steps  taken/being  taken  by  the  Government  to  engage  with  industry  stakeholders and  educational  institutions  to  facilitate  talent  development  in  the  semiconductor sector?

## ANSWER

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

(a) and (c): 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  paves  the  way  for  India's  growing  presence  in  the  global electronics value chains.

An MoU has been signed  between  India  and  the  European  Commission  on  21  November 2023on  'Working  arrangements  on  Semiconductors  ecosystem,  its  supply  chain and innovation under the framework of EU-India Trade and Technology Council (TTC)'. This MoU intends to enhance bilateral collaboration to boost the resilience of the semiconductor supply chains and leverage complementary strengths to promote collaboration in the field of semiconductors. Government of India is making significant efforts to achieve the objectives under this MoU.

(b): The decision regarding the location of chip manufacturing facility lies with companies proposing to setup such facilities. The parameters which affect the selection of manufacturing site for semiconductor manufacturing facility, inter alia, includes: availability of uninterrupted and stable power supply, sufficient water supply, availability of land in Close Proximity to the Airport, dedicated policy for semiconductors, State Government incentives, cluster approach and supportive ecosystem, availability of social infrastructure, and manpower, State Government industry promotion activities, ease of doing business.

- (d): Yes  Sir,  the  MoU  signed  between  India  and  European  Commission  is  aligned  with country's strategies for technological advancement and global collaboration in the semiconductor industry that can encompass the exchange of experiences and best practices regarding semiconductor strategies, programs, trade barriers, and disruptions, with a focus on potential measures to mitigate these challenges. This builds a trusted semiconductor supply chain across the world.
- (e): The steps taken by the Government to engage with industry stakeholders and educational institutions to facilitate talent development in the semiconductor sector:
- i. Talent  Development: Recognizing the importance of Talent development in Semiconductor domain, a technology intensive sector, Government of India has been making significant efforts to develop India as a global talent hub for semiconductors. New curriculums have been launched at UG, Diploma level as a step towards creation of Talent pool in Semiconductor design and Manufacturing domain.
- ii. 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.
- iii. MoU  with  Purdue  University,  USA has  been  signed  by  India  Semiconductor Mission  (ISM),  Ministry  of  Electronics  and  Information  Technology  for  skilled workforce  development  and  joint  R&D  in  the  broad  field  of  semiconductors  and microelectronics.
- iv. MoU with  IBM  India  Private  Limited has  been  signed  by  India  Semiconductor Mission (ISM), Ministry of Electronics and Information Technology to establish IBM as a flagship knowledge  partner of ISM  for the Research Centre including Framework, R&D, Skills Development, Archetypal Chip Design, Investment/Funding support, Business development etc.
- v. Further, Government conducts regular Digital India Dialogue with all stakeholders to get inputs on policies, institutional design etc.

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