Chip push: Govt reopens applications for high-tech semiconductor and display fabs in India

After 15 months of closing the first round of applications for the semiconductor scheme, the government has decided to invite new applications for setting up semiconductor fabs and display fabs in India. The scheme will reopen on June 1, 2023, under the Modified Semicon India Programme. Earlier in the day, Minister Rajeev Chandrasekhar tweeted, confirming the government's decision to reopen the semiconductor and display fabs.

India Semiconductor Mission (ISM), the nodal agency responsible for implementing the Modified Semicon India Programme for the development of the semiconductor and display manufacturing ecosystem in India, will receive and evaluate the applications.

The application window for the "Modified Scheme for setting up of Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor ATMP/OSAT facilities in India" will remain open until December 2024. The application window for the Design Linked Incentive Scheme is also open until December 2024, and to date, 26 applications have been received under the DLI Scheme, with five applications granted approval.

The government launched the Semicon India Programme in December 2021 with an outlay of Rs 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in India. However, following industry feedback, the scheme was modified in September 2022 to make it more competitive. Under the modified scheme, the incentives in the semiconductor policy were revised to 50 per cent for all semiconductor technology nodes. Even IT & Electronics Minister Ashwani Vaishnaw was on a three-day visit to the US earlier this month to meet the heads of leading semiconductor companies such as Intel, GlobalFoundries, Micron and build trust in the government's commitment to building a semiconductor ecosystem, unlike previous attempts.

The ministry states that all applicants who had previously applied under the scheme for setting up Semiconductor Fabs and the Scheme for setting up Display Fabs (earlier schemes) can submit applications under the Modified Scheme for setting up semiconductor fabs and Modified Scheme for setting up display fabs after incorporating suitable modifications in their proposals.

Anil Agarwal-led Vedanta, which had entered into a partnership with Foxconn for setting up display fabs, was awaiting a response to its application. The company had already identified a land parcel in Gujarat and has been hiring experienced professionals from around the world for the semiconductor business.

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