The Rs 76,000 crore Semicon India Programme that Prime Minister Narendra Modi government announced in December 2021 seems to be eliciting the desired response.
The first round of applications, for which the deadline ended on February 15, 2022, have lead to investment proposals worth $20.5 billion from five companies to manufacture semiconductor and display fabs locally.
"India Semiconductor Mission, which has been set up as a dedicated institution for Semicon India Programme, has received 5 applications for Semiconductor and Display Fabs with total investment to the tune of $20.5 billion (Rs 153,750 crore)," the government said in a statement.
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Vedanta leads the pack
Companies such as Vedanta in a joint venture with Foxconn, Singapore-based IGSS Venture and ISMC have proposed an investment worth $13.6 billion for producing chips here. These three companies have sought the support of $5.6 billion from the government under its incentive plan.
"The applications have been received for setting up 28 nm to 65nm semiconductor fabs with capacity of approximately 120,000 wafers per month and the projected investment of $13.6 billion wherein fiscal support from the Central Government is being sought for nearly $5.6 billion," the government said.
For display fabs, 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 advanced smartphones. "Two companies, Vedanta and Elest have submitted applications for display fabs with the projected investment of $6.7 billion wherein fiscal support from the Central Government is being sought for nearly $2.7 billion."
Meanwhile, four companies --- SPEL Semiconductor, HCL, Syrma Technology and Valenkani Electronics have registered for semiconductor packaging; and Ruttonsha International Rectifier has registered for compound semiconductors manufacture.
SCL Mohali has also been handed over to MeitY (Ministry of Electronics and Information Technology) from Department of Space and it is being opened up as a commercial fab for wider participation by Indian semiconductor design companies.
The Design Linked Incentive Scheme has been successful in generating interest among domestic companies and startups. Three companies Terminus Circuits, Trispace Technologies and Curie Microelectronics have submitted applications under this scheme.
What happens now?
The applicant companies have been issued acknowledgment by India Semiconductor Mission (ISM), and will coordinate with the applicant companies who have also reached out to States to provide access to world class infrastructure.
ISM 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, the government said.
For the record, Indian semiconductor market stands at $15 billion in 2020 and is estimated to reach U$63 billion by 2026.
Further, displays constitute a significant portion of the electronic products. India’s display panel market is estimated to be $7 billion and is expected to grow to $15 billion by 2025.
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