Lok Sabha Question No. 868 (UNSTARRED), answered on 2024-02-07
Subject: Semiconductor Mission
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Prataprao  Jadhav, Sudheer Gupta, Shrirang Appa Barne, Sambhajirao Mane Dhairyasheel, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 868

TO BE ANSWERED ON: 07.02.2024

## SEMICONDUCTOR MISSION

## 868. SHRI PRATAPRAO JADHAV:

SHRI SUDHEER GUPTA:

SHRI SHRIRANG APPA BARNE:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI SANJAY SADASHIVRAO MANDLIK:

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

- (a) the current status of semiconductors mission initiated by the Government in year 2021 to make India as a hub for semiconductors;
- (b) whether  the  demand  for  semiconductors  is  increasing  in  the  country  particularly  in automobile, electronics and other consumer industries and if so, the details thereof;
- (c) the total number of semiconductors manufacturing units set up in the country during the last three years, year and location-wise;
- (d) whether  the  Government  proposes  to  give  subsidy  to  companies  for  setting  up  such plants/units in the country and if so, the details thereof; and
- (e) the other steps being taken by the Government to make India self-reliant in semiconductor manufacturing 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. Under the Semicon India programme, the  proposal  of  Micron  Technology  Inc.,  one  of  the  global  semiconductor  companies,  has been  approved  by  the  Government  in  June2023  for  setting  up  a  Semiconductor  ATMP facility in Sanad, Gujarat with capital investment of INR 22,516 crore. The construction work of the plant has started.

(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%.  Consistent  with  almost  every leading electronics manufacturing nation, growth in electronics manufacturing is accompanied by proportionate growth in usage of semiconductors. India has also witnessed similar trend in usage of semiconductors over last few years.

(d): 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.  This  paves  the  way  for  India's  growing  presence  in  the  global  electronics  value chains.

- 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.

- (e): The other  steps  taken  by  the  Government  to  make  India  self-reliant  in  semiconductor manufacturing 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 for Diploma, Under-Graduate, Post Graduate and Doctoral programmes have been prepared in consultation with Industry. Ministry of Educationand AICTEis implementing the same.
- 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. Digital  India  futureLABS ,  has  been  envisioned  to  catalyze  domestic  R&D  by creating a collaborative ecosystem for development of IPs, Standards and catalyzing next-generation Electronics System Design ecosystem in the country.
- iv. Collaborationswith other nations: Government of India hasalso established collaborative partnership with relevant stakeholders such as MoU with USA, Japan, European Union.  Additionally,  India  Semiconductor  Mission  has  signed  MoU  with Purdue University and IBM India Private Limited.

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