5 proposals received in first round with total investment to the tune of USD 20.5 Bn (INR 153,750 crore)
New Delhi: In order to widen and deepen the electronic manufacturing and ensure development of a robust and sustainable Semiconductor and Display ecosystem in the country, the Union Cabinet approved the Semicon India Programme with an outlay of INR 76,000 crore on 15th December, 21.
The first round of applications was invited till 15th February, 22 for establishment of Semiconductor and Display Fabs. Despite aggressive timelines for submission of applications in this Greenfield segment of semiconductor and Display manufacturing, the scheme has elicited good response.
Semiconductors are the building blocks of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence system. Indian semiconductor market stands at USD 15 Bn in 2020 and is estimated to reach USD 63 Bn by 2026. The semiconductor manufacturing is a complex, capital and technology intensive process of fabricating semiconductor wafers.
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 USD 20.5 Bn (INR 153,750 crore).
3 companies viz., Vedanta in JV with Foxconn; IGSS ventures pte, Singapore; ISMC have submitted applications for Semiconductor Fabs. The applications have been received for setting up 28 nm to 65nm Semiconductor Fabs with capacity of approx. 120,000 wafers per month and the projected investment of USD 13.6 Bn wherein fiscal support from the Central Government is being sought for nearly USD 5.6 Bn.
Displays constitute a significant portion of the electronic products. India’s display panel market is estimated to be ~USD 7 Bn and is expected to grow to ~USD 15 Bn by 2025. 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.
2 companies viz., Vedanta and Elest have submitted applications for Display Fabs with the projected investment of USD 6.7 Bn wherein fiscal support from the Central Government is being sought for nearly USD 2.7 Bn.
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. ISM will coordinate with the applicant companies who have also reached out to states to provide access to world class infrastructure. It 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.