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The Government of India is actively promoting the development of a robust semiconductor and display manufacturing ecosystem within the country through a multi-pronged approach encompassing significant fiscal support, strategic global collaborations, and comprehensive talent development initiatives. This concerted effort is spearheaded by the Ministry of Electronics & IT (MeitY) and aims to position India as a key player in the global semiconductor landscape.
Robust Fiscal Incentives Under Semicon India Programme
A cornerstone of the government’s strategy is the Semicon India programme, with a substantial total outlay of ₹76,000 crore. This program provides significant fiscal support across various segments of the semiconductor and display manufacturing value chain. Notably, the scheme offers fiscal support of 50% of the project cost on a pari-passu basis for establishing Silicon Complementary Metal-Oxide-Semiconductor (CMOS) based Semiconductor Fabs and Display Fabs in India. Furthermore, a 50% fiscal support on capital expenditure is extended for setting up Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including Micro-Electro-Mechanical Systems) Fab/ Discrete Semiconductor Fab, as well as Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / Outsourced Semiconductor Assembly and Test (OSAT) facilities within India. To further incentivize the ecosystem, the government has introduced a Product Design Linked Incentive of up to 50% of eligible expenditure, capped at ₹15 Crore per application. Additionally, a “Deployment Linked Incentive” ranging from 6% to 4% of net sales turnover over five years, with a ceiling of ₹30 Crore per application, aims to encourage chip design.
Advancing Manufacturing Capabilities and Infrastructure
The government’s commitment is further demonstrated by the approval of five semiconductor manufacturing projects under the Semicon India Program, entailing a cumulative investment of approximately ₹1,52,000 crore. These projects include one Semiconductor Fabrication facility and four Semiconductor ATMP/OSAT facilities, currently in various stages of implementation and expected to be completed within a 4–6-year timeframe. Recognizing the importance of existing infrastructure, the government has also approved the modernization of the Semi-Conductor Laboratory in Mohali to enhance its efficiency and cycle time.
Strategic Global Collaborations for Ecosystem Development
To bolster its semiconductor manufacturing ambitions and foster a collaborative environment, the Indian government has actively engaged with global partners. Memoranda of Understanding (MoU) have been established with key international players, including the USA, European Union, Japan, and Singapore. These collaborations aim to facilitate technology exchange, promote investment, and build a resilient semiconductor ecosystem within the country.
Nurturing Talent for a Specialized Sector
Acknowledging the technology-intensive and complex nature of semiconductor manufacturing, which necessitates specialized skilled manpower, the government has undertaken significant measures to address this critical need. The All India Council for Technical Education (AICTE) has introduced new curricula for B. Tech in Electronics Engineering (Very Large-Scale Integration (VLSI) Design and Technology), Diploma in Integrated Circuit (IC) manufacturing, and a Minor Degree in Electronics Engineering (VLSI Design and Technology). The Chips to Startup (‘C2S’) programme aims to train 85,000 industry-ready professionals across approximately 113 participating institutions in VLSI and Embedded System Design, with over 43,000 engineering students already onboarded. Furthermore, a Skilled Manpower Advanced Research and Training (SMART) Lab established in NIELIT Calicut in 2022 aims to train one lakh engineers nationwide within five years in VLSI and Embedded System design, having already trained over 42,000 engineers. The India Semiconductor Mission (ISM) has also forged collaborations, including MoUs with IISc and Lam Research to train about 60,000 Indian engineers over the next decade, with IBM to provide access to laboratories and research centers for skill development and internship opportunities, and with Purdue University to promote R&D, talent development, and investment in the semiconductor and display sectors.
Emphasis on Research and Development
The government is strongly focused on fostering Research and Development (R&D) within the semiconductor domain to build a comprehensive ecosystem. MeitY supports R&D projects in academic institutions, research organizations, and startup companies through a dedicated R&D Scheme, covering areas such as nanotechnology, semiconductor materials, semiconductor processes, chip design, and semiconductor IP Cores.
Conclusion
Through the strategic implementation of the Semicon India programme, proactive engagement in global partnerships, comprehensive initiatives for talent development, and a dedicated focus on research and development, the Government of India is making significant strides in establishing a robust and self-sustaining semiconductor design and manufacturing ecosystem. These multifaceted efforts underscore the government’s commitment to positioning India as a prominent player in the global electronics value chain. This information was presented by the Minister of State for Electronics & Information Technology Shri Jitin Prasada in Lok Sabha.
References: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2117925