Lok Sabha Question No. 2146 (UNSTARRED), answered on 2025-03-12
Subject: India Semiconductor Mission
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Shri Ravindra Dattaram Waikar, Smt. Shambhavi, Dr. Shrikant Eknath Shinde, Shri Naresh Ganpat Mhaske

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 2146

TO BE ANSWERED ON: 12.03.2025

## INDIA SEMICONDUCTOR MISSION

## 2146.   SHRI RAVINDRA DATTARAM WAIKAR:

SMT. SHAMBHAVI:

DR. SHRIKANT EKNATH SHINDE:

SHRI NARESH GANPAT MHASKE:

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

- (a) the objectives and key components of the India Semiconductor Mission (ISM);
- (b) whether the Government has signed a Fiscal Support Agreement (FSA) with CG Power and CG SEMI for a Rs. 7,600 crore semiconductor project and if so, the details thereof;
- (c) the details of financial and non-financial assistance provided by the Government for the CG OSAT project so far;
- (d)       the timeline fixed for the completion and operationalization of the said project; and
- (e) the measures  being  taken by the Government  to  boost  indigenous  semiconductor manufacturing under the ISM?

## ANSWER

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

(a)  and  (e):  Government  has  approved  Semicon  India  programme  with  a  total  outlay  of  Rs 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country, which provides:

- i. Fiscal  support  of  50%  of  the  project  cost  on pari-passu basis  for  setting  up  of  Silicon Complementary  Metal-Oxide-Semiconductor  (CMOS)  based  Semiconductor  Fabs  in India.
- ii. Fiscal support of 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.
- iii. Fiscal support of 50% of the Capital Expenditure on pari-passu basis  for  setting  up  of Compound  Semiconductors  /  Silicon  Photonics  (SiPh)  /  Sensors  (including  MicroElectro-Mechanical  Systems)  Fab/  Discrete  Semiconductor  Fab  and  Semiconductor Assembly,  Testing,  Marking  and  Packaging  (ATMP)  /  Outsourced  Semiconductor Assembly and Test (OSAT) facilities in India.
- iv. Product Design Linked Incentive of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and also 'Deployment Linked Incentive' of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application for incentivising chip design.

Government  has  also  approved  modernisation  of  Semi-Conductor  Laboratory,  Mohali  to enhance efficiency and cycle time.

Further, to strengthen semiconductor manufacturing and creating a semiconductor ecosystem in the  country,  Government  has  entered  in  Memorandum  of  Understanding  (MoU)  with  USA, European Union, Japan and Singapore. Additionally, India Semiconductor Mission has entered into MoU with IBM, Lam Research and Purdue University.

(b)  to  (d):        Under  Semicon  India  Programme,  Government  has  approved  five  (5) semiconductor  manufacturing  projects  with  cumulative  investment  of  around  Rs.  1,52,000 crore. This includes the proposal of CG Power and Industrial Solutions Limited's for setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, with an investment of Rs 7,584 crore with production capacity of around 15.07 Million Units per day. This facility is expected to start the commercial operations by third quarter of FY 2026-27.

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