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Govt receives 5 proposals in first round for setting semiconductor and display fabs in India

Govt receives 5 proposals in first round for setting semiconductor and display fabs in India

The applicant companies under the Semiconductor and Display Fab Schemes have been issued acknowledgement by India Semiconductor Mission (ISM) that has been set up as independent institution to spearhead the Semicon India programme.

Three companies have summited proposals for semiconductor fabs and two companies for display fabs. Three companies have summited proposals for semiconductor fabs and two companies for display fabs.

India’s Semiconductor Mission with an outlay of Rs 76,000 crore announced late last year has received an encouraging response from the industry. The government has already received five applications for Semiconductor and Display Fabs with a total investment to the tune of $20.5 billion (Rs 153,750 crore) in the first round of applications till February 15 2022. Three companies have summited proposals for semiconductor fabs and two companies for display fabs.

Vedanta in JV with Foxconn, Singapore headquartered IGSS Ventures Pte and ISMC have submitted proposals 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 $13.6 billion wherein fiscal support from the Central Government is being sought for nearly $5.6 billion.

Vedanta and Elest have submitted applications for Display Fabs with the projected investment of $6.7 billion seeking fiscal support from the Central Government for nearly $2.7 billion. 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.

For establishing a trusted electronics value chain in the areas of application of fabrication and packaging technologies, a Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) /OSAT facilities in India is being implemented.

Four companies which are SPEL Semiconductor Ltd., HCL, Syrma Technology and Valenkani Electronics have registered under this Scheme for Semiconductor Packaging; and Ruttonsha International Rectifier Ltd. has registered under this Scheme for Compound Semiconductors.

As per the said Cabinet approval, SCL Mohali has also been handed over to MeitY from the Department of Space and it is being opened up as a commercial fab for wider participation by Indian semiconductor design companies. Even the Design Linked Incentive Scheme has been successful in generating interest among domestic companies and Startups with applications registered on the India Semiconductor Mission portal. Three companies viz., Terminus Circuits, Trispace Technologies and Curie Microelectronics have submitted applications under this Scheme.

Announced only on December 16 with the portal updated in January this year, the first round of applications was invited till February 15 2022 for the 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 a good response. The government is aggressively working towards the mission.

The applicant companies under the Semiconductor and Display Fab Schemes have been issued acknowledgement by India Semiconductor Mission (ISM) that has been set up as independent institution to spearhead the Semicon India programme.

The government says 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.

Union Minister Ashwini Vaishnaw recently told Business Today that the government has already identified institutes where 85,000 engineers will be trained for semiconductor manufacturing.