Mission for Self Reliance in the Semiconductor and Display Ecosystem

The ‘India Semiconductor Mission’ (ISM) aims to channelize the efforts for promoting the semiconductor and display industry and to build a vibrant ecosystem that will lead to India’s emergence as a global hub for electronics manufacturing and design.

By Saurabh Gaur & Prashant Kumar

Electronic products powered by semiconductor devices drive the modern world’s advanced industrial networks. Electronic products are an indispensable pillar for realising India’s USD 1 trillion digital economy target. With semiconductors serving as the building blocks of all electronic products, it is imperative to build domestic production capacities.

In another significant step towards making India Aatmanirbhar in semiconductors and positioning it as a global hub for Electronic System Design and Manufacturing the Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi approved the ‘comprehensive’ program for developing a robust and sustainable semiconductor and display ecosystem in the country, with an outlay of INR 76,000 crore (> USD 10 billion) on December 15, 2021.

It aims at widening and deepening the electronic supply chains in India. The comprehensive program aims at adoption of an ‘ecosystem-led’ approach, targeting all functional aspects including Silicon Semiconductor Fabs, laboratory, Compound Semiconductors/Silicon Photonics/Sensors (including MEMS) Fabs, Display Fabs, Packaging and Designing. The objective is to facilitate capital support and technological collaborations.

Under this program, the ‘India Semiconductor Mission’ (ISM) aims to channel the efforts for promoting the semiconductor and display industry and to build a vibrant ecosystem that will lead to India’s emergence as a global hub for electronics manufacturing and design.

Led by global experts the ISM will serve as the nodal agency for smooth implementation of the schemes in consultation with the Government ministries/departments/agencies, industry, and academia.

The COVID-19 pandemic has exposed the world's over-reliance on certain countries for critical goods and adverse industrial consequences of global supply chain disruptions. As companies look to diversify their supply chains, India with a tailwind of growth momentum has an exclusive opportunity to emerge as the ‘favored destination’ for global electronics including semiconductors in the post-COVID 19 world.

There are four schemes under the program

Design Linked Incentive Scheme (DLI): It offers financial incentives as well as 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 to design.

Scheme for setting up of Semiconductor Fabs: Fiscal support for setting up of Silicon CMOS-based Semiconductor Fab depending on the technology node. Aimed at attracting large investments for setting up semiconductor wafer fabrication facilities, the scheme is likely to strengthen the manufacturing ecosystem and help establish a trusted value chain.

Scheme for setting up of Display Fabs: It aims at attracting large investments for manufacturing TFT LCD or AMOLED based display panels by extending fiscal support of up to 50% of Project Cost (subject to a ceiling of INR 12,000 crore per Fab).

Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT Facilities: It extends fiscal support of 30% of the Capital Expenditure investment for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India.

Saurabh Gaur is Joint Secretary, MeITy

Prashant Kumar is a Scientist -E, MeITy

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