The Union Cabinet had approved the comprehensive Semicon India programme with a financial outlay of INR 76,000 crore for the development of a sustainable semiconductor and display ecosystem in 2021.
Semicon India Program aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT) and Semiconductor Design.
The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.
The India Semiconductor Mission (ISM) aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes.
Led by global experts of the Semiconductor and display ecosystem the mission aims to serve as a focal point for the comprehensive, coherent, efficient, and smooth deployment of the Program for Development of Semiconductor and Display Ecosystem in consultation with the Government ministries / departments / agencies, industry, and academia.
Vision
The vision of ISM is to build a vibrant semiconductor and display design and innovation ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design in a more structured, focused, and comprehensive manner through various mechanisms.
Strategy
Formulation of a comprehensive long-term strategy for developing semiconductors & display manufacturing facilities and semiconductor design ecosystem in the country in consultation with Government ministries / departments / agencies, industry, and academia.
Supply Chain
Facilitation in the adoption of trusted electronics through secure semiconductors and display supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment.
Design & Start up
Enabling a multi-fold growth of Indian semiconductor design industry by providing requisite support in the form of Electronic Design Automation (EDA) tools, foundry services and other suitable mechanisms for early-stage start-ups.
Intellectual Property
Promoting indigenous Intellectual Property (IP) generation and encourage, enable and incentivize Transfer of Technologies (ToT).
Partnership: Enabling collaborations and partnership programs with national and international agencies, industries and institutions for catalysing collaborative research, commercialization and skill development.
Objective: To attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.
Eligibility: Companies / Consortia / Joint Ventures proposing to set up a Silicon CMOS based Semiconductor Fab in India for manufacturing Logic / Memory / Digital ICs / Analog ICs / Mixed Signal ICs / SoCs
Tenure of the Scheme: Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.
Procedure to Apply
Schemes by Government of India
- Semiconductor Fabs
- Display Fabs
- Compound Semiconductor & ATMP
- Design Linked Incentive
Semiconductor Fabs
The Scheme for setting up of Semiconductor Fabs in India provides fiscal support of 50% of the project cost on a pari-passu basis to the approved applicants.
Electronics permeates all sectors of the economy and the electronics industry has cross-cutting economic and strategic importance. Currently valued at around USD 2 Trillion (₹150 lakh crore), the global electronics market is expected to grow significantly given the increasing penetration of emerging technologies including 5G, IoT, Artificial Intelligence, Robotics, Smart Mobility, Smart Manufacturing, etc.
Semiconductors are building blocks of electronic devices. Semiconductors are used to power a vast array of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence system.
The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and create an enabling environment for the industry to compete globally. One of the main strategies of NPE 2019 is to facilitate setting up of semiconductor wafer fabrication facilities and its eco-system for design and fabrication of chip components.
In case of fiscal support being provided as equity either in part or in full, Government of India’s share will not exceed 49% of total project equity.
The structure and quantum of the fiscal support will be negotiated by the India Semiconductor Mission with the applicants who are selected on the basis of technological and financial evaluation of their proposals.
Additional financial support, if any, offered by the State Government or any of its agencies or local bodies may also be availed.
Expenditure Finance Committee shall determine the structure and quantum of fiscal support to be provided under the scheme in consultation with Ministry of Electronics and Information Technology and the Nodal Agency.
Display Fabs
The Scheme for setting up of Display Fabs in India provides fiscal support of 50% of the project cost on a pari-passu basis to the approved applicants.
Electronics permeates all sectors of the economy and the electronics industry has cross-cutting economic and strategic importance. Currently valued at around USD 2 Trillion (₹150 lakh crore), the global electronics market is expected to grow significantly given the increasing penetration of emerging technologies including 5G, IoT, Artificial Intelligence, Robotics, Smart Mobility, Smart Manufacturing, etc.
The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and create an enabling environment for the industry to compete globally. One of the main strategies of NPE 2019 is to facilitate setting up of display fabrication facilities.
Expenditure Finance Committee shall determine the structure and quantum of fiscal support to be provided under the scheme in consultation with Ministry of Electronics and Information Technology and the Nodal Agency.
In case of fiscal support being provided as equity either in part or in full, Government of India’s share will not exceed 49% of total project equity.
Additional financial support, if any, offered by the State Government or any of its agencies or local bodies may also be availed.
Compound Semiconductor & ATMP
The Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs / Discrete Semiconductors Fab and Semiconductor ATMP / OSAT facilities in India shall provides fiscal support of 50% of the of the Capital Expenditure on a pari-passu basis to the approved applicants.
The electronics industry is the world’s largest and fastest growing industry with applications in all sectors of the economy. Semiconductors have been a key enabler in the advancement of electronics for the past 50 years and will continue to play an even greater role with the introduction of new applications including IoT, artificial intelligence, 5G, smart cars, smart factories, data centres, robotics, etc.
Semiconductor manufacturing is a complex and research-intensive sector, defined by rapid changes in technology which require significant and sustained investment. In the micro-electronics industry, integrated circuits (ICs) and discrete semiconductor devices are produced in a wafer Fabrication facility, commonly known as a Fab. Semiconductors are at the heart of electronic products and constitute a significant part of the Bill of Materials (BOM).
The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and create an enabling environment for the industry to compete globally. One of the main strategies of NPE 2019 is to facilitate setting up of semiconductor Fab facilities and its eco-system for design and fabrication of chips and chip components.
Fiscal support: The scheme shall extend a fiscal support of 50% of the Capital Expenditure for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab/ Discrete Semiconductor Fab and Semiconductor ATMP / OSAT facilities in India
Additional financial support, if any, offered by the State Government or any of its agencies or local bodies may also be availed. However, an applicant under this Scheme will not avail incentive under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) under the Semiconductor Fab, Compound Semiconductors Fab and ATMP category
Design Linked Incentive
The Design Linked Incentive Scheme aims to offer financial incentives as well as design infrastructure support across various stages of development and deployment of semiconductor design(s) for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design(s) over a period of 5 years.
Semiconductors are at the heart of all electronic products and constitute a significant share in the Bill of Material (BOM). The National Policy on Electronics 2019 aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and envisions creation of a vibrant semiconductor chip design ecosystem in the country. With an exceptional talent pool of 20% of world’s semiconductor design engineers and thousands of chips designed by them every year in the country, India is poised for growth to achieve self-reliance and technology leadership in semiconductor design sector.
Ministry of Electronics and Information technology has announced the Design Linked Incentive Scheme to offset the disabilities in the domestic industry involved in semiconductor design in order to not only move up in value-chain but also strengthen the semiconductor chip design ecosystem in the country. CDAC is responsible for implementation of the DLI Scheme as Nodal Agency.
