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Semicon India Program: Government Gets Proposals Worth $20.5 Billion

The Union Cabinet approved the Semicon India Programme with an outlay of ₹76,000 crores on 15.12.2021 and the first round of applications till 15.02.2022.

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VoicenData Bureau
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Semicon India Program: Govt. gets proposals worth $20.5 billion

Under the Semicon India Program, the government has received investment proposals worth $20.5 billion. The government said that the response was good despite an aggressive timeline.

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Semicon India Program

The Indian semiconductor market stood at US$ 15 Bn in 2020; it will reach US$63 Bn by 2026. Semiconductor manufacturing is a complex, capital and technology-intensive process of fabricating semiconductor wafers. India Semiconductor Mission, a dedicated institution for Semicon India Programme, has received 5 applications for Semiconductor and Display Fabs. Incidentally, these proposals clock in at US$20.5 Bn, or ₹1.53 trillion.

The companies that have submitted the applications are as follows:

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  • Vedanta in JV with Foxconn
  • IGSS ventures Pte, Singapore
  • ISMC

These three have submitted applications for Semiconductor Fabs. The companies will set up semiconductor fabs from 28 nm to 65nm; they will have a capacity of around 120,000 wafers per month. What's more, these three will invest US$13.6 Bn, with US$5.6 Bn sought in government support.

Display Fabs

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Displays constitute a significant portion of electronic products. India’s display panel market currently stands at US$ 7 Bn. It will, though, grow to US$15 Bn by 2025. Under the Scheme for setting up of Display Fabs in India, applications have been filed for setting up Gen 8.6 TFT LCD Display Fab as well as 6th Generation Display FAB for the manufacture of State-of-art AMOLED display panels, used in advanced smartphones.

Two companies, namely, Vedanta and Elest have submitted applications for Display Fabs with a projected investment of $6.7 Bn wherein fiscal support from the Central Government is being sought for nearly US$2.7 Bn.

The applicant companies under the Semiconductor and Display Fab Schemes have been issued acknowledgment by India Semiconductor Mission (ISM) that has been set up as an independent institution to spearhead the Semicon India program. ISM will coordinate with the applicant companies who have also reached out to states to provide access to world-class infrastructure.

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It will work closely with the state governments to establish high-tech clusters with 300 - 500 acres of developed land, 100 KVA Power, 50 MLD Water, availability of natural gases, and common facility centers for testing and certification.

Other Facilities Under Semicon India Proposals

India wants to establish a value chain in electronics in the areas of application of fabrication and packaging. Therefore, it has set up schemes to set up Compound Semiconductors/Silicon Photonics/Sensors Fab and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/OSAT facilities in India.

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Incidentally, four companies have already registered under this scheme for Semiconductor packaging. These are SPEL Semiconductor Ltd., HCL, Syrma Technology, and Valenkani Electronics. On the other hand, Ruttonsha International Rectifier Ltd. has registered under this Scheme for Compound Semiconductors.

SCL Mohali

As per the Cabinet approval, SCL Mohali has also been handed over to MeitY from the Department of Space and it is being opened up as a commercial fab for wider participation by Indian semiconductor design companies. This is important as India's AtmaNirbhar Bharat quest continues to the semiconductors.

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India is also one of the favorable destinations for semiconductor design with more than 50,000 design professionals and many design services companies. What's more, India has already designed over 2000 ICs and chips in the country.

Semiconductor Design

The Design Linked Incentive Scheme has generated interest among domestic companies and Startups with applications registered on the India Semiconductor Mission portal. Also, Terminus Circuits, Trispace Technologies, and Curie Microelectronics have submitted applications under this Scheme.

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The applicant companies have also submitted the proposals for technology acquisition, partnerships, and collaborations. The enthusiastic participation by the companies under the Semicon India Programme reinforces the Hon’ble Prime Minister’s vision of “AatmaNirbhar Bharat” with the aim of technology leadership in semiconductors over the next 20 years. It will also boost the Indian economy and generate a skilled pool of manpower along with significant employment generation.

Semicon India Programme is also building on the successes of the Digital India Programme and Make in India Programme in the electronics manufacturing sector. The pragmatic schemes have laid a strong foundation for the Semicon India Programme thereby making the country an internationally conducive and competitive destination for semiconductor and display manufacturing.

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