Lok Sabha Question No. 1387 (UNSTARRED), answered on 2024-07-31
Subject: Manufacturing of Semiconductor Chips
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Mohammad Jawed

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO.1387

TO BE ANSWERED ON: 31.07.2024

## MANUFACTURING OF SEMICONDUCTOR CHIPS

## 1387.    DR. MOHAMMAD JAWED:

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

- (a) whether the Government is aware of the quantity of semiconductor chips manufactured, imported to and exported from India since 2014;
- (b) if  so,  the  year-wise details thereof along with the steps taken to encourage domestic manufacturing of semiconductor in the country including Palakkad;
- (c) the details of Production Linked Incentive (PLI) and other budgetary support for the semiconductor manufacturing sector;
- (d) whether  the  Government  is  aware  of  the  expected  shortage  of  professionals  in  the semiconductor industry; and
- (e) if so, the actions taken by the Government to overcome this shortage of professionals?

## ANSWER

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

(a) to (c):As per industry estimates, the size of Indian semiconductor market was about $ 38 Bn in year 2023 and is expected to reach $ 109 Bn by 2030.

Steps taken by Government to encourage domestic manufacturing of semiconductors in the country are as follows:

- (i) 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.

Following four schemes have been introduced under the aforesaid programme:

- a) ' Modified Scheme for setting up of Semiconductor Fabs in India ' extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fabs in India.
- b) ' Modified Scheme for setting up of Display Fabs in India ' extends fiscal support of 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.
- c) ' 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.
- d) 'Design Linked Incentive (DLI) Scheme': In  addition  to  the  design  infrastructure support, 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.
- e) Government has also approved modernisation of Semi-Conductor Laboratory, Mohali as a brownfield Fab.

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

- (i) The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors  (SPECS)  was  notified  on  01.04.2020  and  was  open  to  receive applications  upto  31.03.2024.  The  scheme  provides  a  financial  incentive  of  25%  on capital expenditure for electronic components, e-waste recycling, mechanics, micro/nano-electronic  components,  solar  photovoltaic  (SPV)  polysilicon,  SPV  wafers and  solar  cells,  specialized  sub-assemblies  and  capital  goods  for  manufacture  of aforesaid goods. As of, 30.06.2024, incremental investment of      Rs. 8,803.14 crores had been made under the SPECS scheme. This has led to production of Rs. 18,083.55 crores till 30 th June,2024
- (ii) Production  Linked  Incentive  (PLI)  Scheme  for  Large  Scale  Electronics : To  boost domestic manufacturing and attract investment in mobile phones value chain including electronic  components  and  semiconductor  packaging,  Production  Linked  Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on 01.04.2020. The scheme extends an incentive of 3% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments viz. Mobile Phones and Specified Electronic Components, to eligible companies, for a period of 5  years. Till 30th June, 2024, incremental investment of Rs 8,390 Crores had been made under the PLI scheme. This has led to production of Rs 5,14,960 Crores till 30th June, 2024.

(d) and (e):The Government recognizes the importance of semiconductor technology for the country's digital transformation and self-reliance in the sector. To foster talent development, several initiatives have been launched in India:

- (i) To develop a roadmap for "India as a Semiconductor Talent Nation", a committee was  constituted  in  August  2022  with  the  representatives  from  semiconductor industry, academia and Government.
- (ii) All  India  Council  for  Technical  Education  (AICTE)  has  launched  the  following 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:
- i. B. Tech in Electronics Engineering (VLSI Design and Technology)
- ii. Diploma in IC manufacturing
- iii. Minor Degree in Electronics Engineering (VLSI Design and Technology)
- (iii) Under the Chips to Startup (C2S) Programme being implemented at 113 academic institutions/ R&D organizations/ Start-ups/ MSMEs, 85,000 number of high-quality and qualified engineers are being trained in several areas. These include Very largescale integration (VLSI) and Embedded System Design as well as development of 175  ASICs  (Application  Specific  Integrated  Circuits),  working  prototypes  of  20 System on Chips (SoC), 30 FPGA based designs and 30 IP Cores over a period of 5 years.

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