Lok Sabha Question No. 556 (UNSTARRED), answered on 2023-12-06
Subject: Indigenous Semiconductor Design
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 556

TO BE ANSWERED ON: 06.12.2023

## INDIGENOUS SEMICONDUCTOR DESIGN

## 556.       SHRI P.C. MOHAN:

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

(a) whether the Government has taken any steps to promote the development of indigenous semiconductor  design  and  manufacturing  capabilities  in  the  country  and  if  so,  the  details thereof;

(b)  the details of any plan to promote the development of indigenous semiconductor design and manufacturing capabilities in India; and

(c)  the  steps  being  taken  by  the  Government  to  attract  investment  in  the  semiconductor manufacturing sector?

## ANSWER

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

(a) and (b):   Yes sir. Government is very focused on its important 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 will serve to pave 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.

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 Startups involved in semiconductor design in the country.

ChipIN Centre has also been setup at C-DAC as one-stop centre for providing access to stateof-the-art chip design infrastructure & fabrication services to academia and start-ups across the country.

(c):  Following  steps  have  been  taken  by  the  Government  of  India/  India  Semiconductor Mission to attract investment in the semiconductor manufacturing sector:

- i. Announcement of Semicon India programme with a total outlay of INR 76,000 crore, which offers 50 % incentives on Pari-passu basis as detailed in para (a) & (b) above.
- ii. Organized  Semicon  India  Conference  2022  and  2023  to  sensitize  various  stake holders of semiconductor industry about Semicon India Programme and the policies of various state governments for semiconductor manufacturing.
- iii. Established  collaborative  partnership  with  relevant  stakeholders  such  as  MoU  with USA, Japan, European Union, Purdue University, IBM India Private Limited.
- iv. Construction  on  first  semiconductor  unit  under  the  Semicon  India  program  has commenced in Sanand, Gujarat.
- v. A prominent semiconductor companyhas begun construction of its largest semiconductor design centre in Bengaluru.
- vi. Another prominent semiconductor company has collaborated with Indian Institute of Science to train a large pool of engineers conversant in semiconductor technologies.

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