NEW DELHI: Nearly 20 applications are pending with the Ministry of Electronics and Information Technology for evaluation and approval for semiconductor under the production linked incentive scheme, a senior government official said on Monday.
As per Akash Tripathi, CEO of the India Semiconductor Mission, the country is expected to have more than 10 semiconductor units within the next decade to meet its domestic and global demand. “India should have at least 10 semiconductor units including fabs to meet the demand for chips both in India and worldwide,” said Tripathi.
The government announced an incentive of Rs 76,000 crore to develop semiconductor ecosystem in 2021. It has so far approved several semiconductor projects including a chip fabrication unit in Dholera, Gujarat, and four chip packaging units: three in Sanand, Gujarat, and one in Morigaon, Assam. The cumulative investment in these projects is Rs 1.50 lakh crore.
As the capital announced for the scheme is nearing exhaustion, the government is expected to announce a second tranche of incentives for semiconductor soon. Tripathi mentioned that if necessary, the government will increase the allocation to develop the semiconductor ecosystem in the country.
“When the mission was started, it was anticipated that at least 10 years of support would be needed until we become mature. If the funds need to be expanded, we will do it,” said Tripathi.
The government recently approved a Rs 3,307 crore proposal for an outsourced assembly and testing (OSAT) unit by Mysuru-based Kaynes Semicon. The OSAT unit will be set up in Sanand, Gujarat, with a total capacity of 6.3 million chips per day.
Meanwhile, the Maharashtra government announced that it had approved a $10 billion chip plant to be jointly established by Israel’s Tower Semiconductor and the Adani Group. Regarding this, Tripathi said Israel’s Tower Semiconductor has submitted its application, but the Ministry of Electronics and Information Technology (MeitY) has requested more details including information about its technology partner and financial model.
US partners with India Semiconductor Mission
US has announced a collaboration with India’s Semiconductor Mission to explore opportunities for expanding and diversifying the global chip ecosystem. The partnership aims to create a resilient, secure, and sustainable semiconductor value chain worldwide. US’ $500 mn chip fund initiative falls under US International Tech Security and Innovation (ITSI).