India gets proposals worth ₹1.5 lakh crore for semiconductor, display fabs

  • The Indian semiconductor market size was an estimated $15 billion in 2020 and is expected to reach $63 billion by 2026, as semiconductors are critical components of manufacturing electronic devices 

Gulveen Aulakh
First Published19 Feb 2022, 06:06 PM IST
Semiconductors are critical components of manufacturing electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence systems. (Photo: Bloomberg)
Semiconductors are critical components of manufacturing electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence systems. (Photo: Bloomberg)

NEW DELHI: The Union government’s Semicon India Programme, set up to build the semiconductor and display ecosystem in the country, has generated large scale interest among companies with proposals of more than 1.53 lakh crore received in the first round which closed on 15 February.

Five proposals for semiconductor and display fabs have been received with total investment nearing $20.5 billion or 153,750 crore, the ministry of electronics and information technology (MeitY) said in a statement Saturday.

“Despite aggressive timelines for submission of applications in this greenfield segment of semiconductor and display manufacturing, the scheme has elicited good response,” the ministry said.

Vedanta, in a joint venture with Foxconn, IGSS Ventures Pte, Singapore, and ISMC have submitted applications for semiconductor fabs totalling $13.6 billion. The applications have been received for setting up 28 nm-65nm semiconductor fabs with capacity of 120,000 wafers per month, wherein $5.6 billion of fiscal support is being sought from the central government.

Vedanta and another company Elest have submitted applications for display fabs with the projected investment of $6.7 billion, the ministry said. Fiscal support of $2.7 billion is being sought from the central government.

SPEL Semiconductor Ltd, HCL, Syrma Technology and Valenkani Electronics have registered for semiconductor packaging, while Ruttonsha International Rectifier Ltd has registered for compound semiconductors, under the scheme for compound semiconductors, silicon photonics, sensors fab and semiconductor assembly, testing, marking and packaging or ATMP and OSAT facilities.

Separately, Terminus Circuits, Trispace Technologies and Curie Microelectronics have submitted applications under the Design Linked Incentive (DLI) scheme, which has been successful in generating interest among domestic companies and startups. The applicant companies have also submitted the proposals for technology acquisition, partnerships and collaborations with research institutes as part of the applications, the ministry added.

The ministry added that following the Union cabinet's approval, SCL Mohali has also been handed over to MeitY from Department of Space and it is being opened up as a commercial fab for wider participation by Indian semiconductor design companies, it said.

The Indian semiconductor market size was an estimated $15 billion in 2020 and is expected to reach $63 billion by 2026, as semiconductors are critical components of manufacturing electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence systems.

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 that are used in the advanced smartphones. India’s display panel market is estimated to be $7 billion and is expected to grow to $15 billion by 2025.

“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 programme,” the ministry said.

ISM will coordinate with the applicant companies who have also reached out to states to provide access to world class infrastructure, the ministry said in the statement, adding that the mission 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 centres for testing and certification.

“India is one of the favourable destinations for semiconductor design with more than 50,000 design professionals and many design services companies. Over 2000 ICs and chips have been designed in India in the last few years,” the ministry stated further.

The enthusiastic participation by companies in the 76,000 crore scheme will likely develop a robust and sustainable semiconductor and display ecosystem in the country. It is expected to boost the Indian economy and generate skilled pool of manpower along with significant employment generation, the ministry said.

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First Published:19 Feb 2022, 06:06 PM IST
HomeIndustryManufacturingIndia gets proposals worth ₹1.5 lakh crore for semiconductor, display fabs

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