Lok Sabha Question No. 845 (UNSTARRED), answered on 2024-02-07
Subject: Manufacturing of Semi-conductors
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Ramesh Bidhuri

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO.845

TO BE ANSWERED ON: 07.02.2024

## MANUFACTURING OF SEMI-CONDUCTORS

## 845.   SHRI RAMESH BIDHURI:

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

- (a) whether  the  Government  has  taken  any  steps  for  the  production/manufacturing  of semiconductors in the country;
- (b) if so, the details thereof; and
- (c) whether  any  industry/plant  has  been  set  up  till  date  in  this  regard  and  if  so,  the  details thereof ?

## ANSWER

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

(a)  and  (b):    Yes  Sir,  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.

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): The proposal of Micron Technology Inc., one of the global semiconductor companies, has been approved by Government for setting up a Semiconductor ATMP facility in India with capital investment of INR 22,516 crore. The construction work of the plant has started. Further, 4 proposals have been received for setting up Semiconductor Fabs and additional 13 proposals  have  been  received  for  setting  up  compound  semiconductor  fabs  and  ATMP facilities.

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