QUESTION

(a) the major Government and private companies engaged in semiconductor chip
fabrication, their installed capacity and the fabrication capabilities in terms of
transistor density;

(b) the global standard for chip fabrication in terms of transistor density and the current
indigenous capacity; and

(c) the steps taken by Government in making the Indian chip fabrication industry gain
access to cutting edge resources, funding and technology?

ANSWER

MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)

(a) to (c):Government has approved Semicon India programme with a total outlay of INR
76,000 crore for the development of semiconductor and display manufacturing ecosystem
in the country. The programme aims to provide financial support to companies investing in
semiconductors, display manufacturing and design ecosystem.

Following four schemes have been introduced under the aforesaid programme:

a) „Modified Scheme for setting up of Semiconductor Fabs in India‟ extends a fiscal
support of 50% of the project cost on pari-passu basis for setting up of Silicon
CMOS based Semiconductor Fabs in India.

b) „Modified Scheme for setting up of Display Fabs in India‟ extends fiscal support
of 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.

c) „Modified Scheme for setting up of Compound Semiconductors / Silicon
Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor
Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India’
extends a fiscal support of 50% of the Capital Expenditure on pari-passu basis for
setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors
(including MEMS) Fab/ Discrete Semiconductor Fab and Semiconductor ATMP /
OSAT facilities in India.

d) ‘Design Linked Incentive (DLI) Scheme’: In addition to the design infrastructure
support, the scheme provides “Product Design Linked Incentive” of up to 50% of the
eligible expenditure subject to a ceiling of ₹15 Crore per application and
“Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years
subject to a ceiling of ₹30 Crore per application.

e) Government has also approved modernisation of Semi-Conductor Laboratory,
Mohali as a brownfield Fab.

4 semiconductor units with cumulative investment of Rs 1,48,746 Cr have been approved
under the Semicon India Programme.