Semicon India Takes a Step Forward with Acceptance of Applications for Semiconductor, Display Fabs

Article By : PIB India

India's Union Cabinet has approved the Semicon India Program with an outlay of INR76,000 crore.

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 Program with an outlay of INR76,000 crore.

The first round of applications was invited till February 15, 222, 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.

Semiconductor Fabs

Semiconductors are the building blocks of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure, and defense system. Indian semiconductor market stands at $15 billion in 2020 and is estimated to reach $63 billion 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 Program, has received five applications for semiconductor and display fabs, with total investment to the tune of $20.5 billion (INR153,750 crore).

Three companies—Vedanta in JV with Foxconn; IGSS Ventures (Singapore); and ISMC have submitted applications for semiconductor fabs. The applications have been received for setting up 28nm to 65nm semiconductor fabs with capacity of approximately 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.

Display Fabs

Displays constitute a significant portion of the electronic products. India’s display panel market is estimated to be $7 billion and is expected to grow to $15 billion 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.

Two companies—Vedanta and Elest—have submitted applications for display fabs with the projected investment of $6.7 billion, wherein fiscal support from the Central Government is being sought for nearly $2.7 billion.

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 Program. 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, 100KVA power, 50MLD water, availability of natural gases, and common facility centers for testing and certification.

Compound Semiconductors, ATMP/OSAT facilities

In order to establish 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—SPEL Semiconductor Ltd, HCL, Syrma Technology, and Valenkani Electronics—have registered under this scheme for semiconductor packaging; and Ruttonsha International Rectifier Ltd has registered for compound semiconductors.

SCL Mohali

As per the said Cabinet approval, SCL Mohali has also been handed over to MeitY from Department of Space, and is being opened up as a commercial fab for wider participation by Indian semiconductor design companies. This is expected to strengthen India’s quest for AtmaNirbhar Bharat in semiconductors.

India is one of the favorable destinations for semiconductor design with more than 50,000 design professionals and many design services companies. Over 2,000 ICs and chips have been designed in India in the last few years.

Semiconductor Design

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—Terminus Circuits, Trispace Technologies, and Curie Microelectronics—have submitted applications under this scheme.

The applicant companies have also submitted the proposals for technology acquisition, partnerships, and collaborations with research institutes as part of the applications. The enthusiastic participation by the companies under the Semicon India Program reinforces Prime Minister Narendra Modi’s vision of AatmaNirbhar Bharat, with the aim of technology leadership in semiconductors over the next 20 years. This is expected to boost the Indian economy and generate a skilled pool of manpower along with significant employment generation.

Semicon India Program is building on the successes of Digital India Program and Make in India Program in the electronics manufacturing sector. The pragmatic schemes have laid a strong foundation for the Semicon India Program, thereby making the country an internationally conducive and competitive destination for semiconductor and display manufacturing.


Leave a comment