Semicon India program secures five Rs 1,53,750 crore applications for Semiconductor and Display Fabs – Tech Observer

The India Semiconductor Mission, which was established as a dedicated entity for the Semicon India program, received five applications for Semiconductor and Display Fabs totaling Rs 153,750 crore of investment.

According to the Ministry of Electronics and Information Technology (MeitY), companies such as Vedanta in joint venture with Foxconn; IGSS ventures pte, Singapore; and ISMC applied for Semiconductor Fabs. Applications have been submitted for the establishment of 28nm to 65nm semiconductor manufacturing facilities with a monthly capacity of around 120,000 wafers and an estimated investment of $13.6 billion, with the central government providing nearly $5.6 billion in tax assistance.

On December 15, the Union Cabinet authorized the Semicon India program with an expenditure of Rs 76,000 crore to expand and deepen electronics manufacturing and enable the establishment of a semiconductor and display ecosystem in the country.

According to MeitY, the first round of applications for the creation of Semiconductor and Display Fabs is open until February 15, 2022. Despite the program’s strict schedule for submitting applications, it received a positive response.

Semiconductors are the fundamental components of electronic devices ranging from smartphones and cloud servers to modern automobiles, industrial automation, critical infrastructure and military systems. India’s semiconductor market is expected to be worth $15 billion in 2020 and to reach $63 billion by 2026. Semiconductor manufacturing is a time-consuming, capital-intensive and technology-intensive process that involves the manufacture of semiconductor wafers.

Screens are a significant part of all electrical products. The billboard market in India is expected to be worth around USD 7 billion and reach USD 15 billion by 2025. a Gen 8.6 Fab TFT LCD display and a 6th Gen FAB display for manufacturing state-of-the-art AMOLED display panels used in modern smartphones.

Two companies, Vedanta and Elest, submitted applications for Display Fabs with an estimated investment of $6.7 billion and requesting about $2.7 billion in tax support from the central government.

Candidates for the Semiconductor and Display Fab Scheme have been recognized by the India Semiconductor Mission (ISM), which was established as an independent institution to lead the Semicon India program.

ISM will work with companies and candidate states to ensure they have access to world-class infrastructure. It will work closely with state governments to build high-tech clusters with 300 to 500 acres of developed land, 100 kilowatts of electricity, 50 million gallons of water, natural gas supply, and testing and shared certificates.

To develop a trusted electronics value chain in manufacturing and packaging technologies, a program is being implemented to establish compound semiconductor/silicon photonics/sensor and assembly plants, Semiconductor Testing, Marking and Packaging (ATMP)/OSAT in India.

Four companies have registered under this program for semiconductor packaging, including SPEL Semiconductor Ltd., HCL, Syrma Technology and Valenkani Electronics; and Ruttonsha International Rectifier Ltd has registered under this program for compound semiconductors.

SCL Mohali has also been transferred to MeitY from the Department of Space, and it is open as a commercial factory for greater involvement of Indian semiconductor design firms as per the above Cabinet clearance. This is expected to bolster India’s efforts to achieve AtmaNirbhar Bharat status in semiconductors. India is a sought after location for semiconductor design, with over 50,000 design specialists and a plethora of design service firms. Over the past few years, India has designed around 2,000 integrated circuits and chips.

The Design Linked Incentive Scheme has been successful in attracting interest from domestic companies and startups who submitted applications through the India Semiconductor Mission application portal. Three companies applied for this program: Terminus Circuits, Trispace Technologies and Curie Microelectronics.

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