Lok Sabha Question No. 4305 (UNSTARRED), answered on 2026-03-18
Subject: Semiconductor and Display Manufacturing Scheme
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Shri Sasikanth Senthil

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 4305

TO BE ANSWERED ON: 18.03.2026

## SEMICONDUCTOR AND DISPLAY MANUFACTURING SCHEME

## 4305.   SHRI SASIKANTH SENTHIL:

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

- (a)  the  total  financial  outlay  approved  under  the  Semiconductor  and  Display  Manufacturing Scheme and the amount disbursed to date, project-wise;
- (b)  the  number  of  projects  approved  under  the  scheme  for  semiconductor  fabrication  (fabs), compound semiconductors and assembly, testing, marking and packaging (ATMP/OSAT);
- (c) whether a substantial proportion of approved projects are presently concentrated in assembly and packaging activities rather than advanced fabrication;
- (d) the rationale for prioritizing  ATMP/OSAT  facilities  and  whether  this  limits India's technological self-reliance in core semiconductor manufacturing;
- (e) whether the Government has conducted an assessment of value addition at different stages of the semiconductor value chain and the expected employment and technology transfer outcomes; and
- (f) the steps proposed to ensure that India moves beyond assembly-led manufacturing towards fullstack semiconductor capability including wafer fabrication and design ecosystems?

## ANSWER

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

## (a) to (f): India's semiconductor strategy:

India's  semiconductor  development  strategy  is  inspired  by  Hon'ble  Prime  Minister's  vision  of Atmanirbhar Bharat and Make in India, Make for the world.

India's semiconductor strategy builds on the success of the electronics manufacturing. In last 11 years, electronics manufacturing has increased to nearly 12 Lakh Cr and provides employment to more than 60 lakh people.

## Semicon India program:

In  2022,  Government  approved  Semicon  India  programme  for  the  development  of  complete semiconductor  ecosystem,  ranging  from  design,  fabrication,  assembly,  testing,  packaging,  and module manufacturing.

Fiscal incentives were provided for setting up semiconductor units including fabs, packaging units, etc.

## Progress of Semicon India:

In  a  short  span  of  four  years,  the  Government  has  approved  10  units  with  an  investment commitment of about Rs 1.6 Lakh Cr.

Approved  projects  include  one  Silicon  CMOS  based  semiconductor  fabs  for  logic  chips,  one Silicon Carbide based semiconductor fab for high power applications, two advance packaging for glass-based packaging and wafer level packaging and 6 other ATMP/OSAT facilities.

The  commercial  production  in  one  of  the  plant  (Micron,  Sanand)  has  commenced  with  Pilot production underway in 3 units.

## Developing design ecosystem:

As per industry assessment, the maximum value addition in the semiconductor chips is from the design of chips. Semicon India programme focuses on design of semiconductor chips, SoCs and development of Intellectual Property (IP) through Design Linked Incentive (DLI) Scheme.

Government has approved 24 projects for the design of semiconductor chips & SoCs, with a total project value of Rs 900 Cr.

- These projects address critical sectors such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, and broadband and IoT SoCs.
- Out of 24 projects, 14 companies have raised venture capital funding to scale up and productize their solutions.
- Rs 650 crore raised in VC funding by Indian semiconductor startups.
- 7 chips have been successfully fabricated out of 16 designs taped out across multiple foundries, including advanced nodes such as 12 nm at TSMC
- 103 fabless chip design companies have been supported with access to advanced chip   design infrastructure, cumulatively consuming 60 lakh hours of tool usage
- 315 Universities are getting access to advanced EDA tools for the students. So far, the usage of these tools has exceeded 185 lakh hours
- 146  designs  taped  out  by  49  institutions  across  India  out  of  which  SCL  has     successfully fabricated and packaged 94 student-designed chips

Building on the success of Semicon India Programme 1.0, Union Budget 2026-27 has announced India Semiconductor Mission 2.0 for equipment and materials, design full stack, Indian IP and fortify supply chains.

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