The Ministry of Electronics and Information Technology (MeitY), in a statement, said it had received five applications for the establishment of semiconductor manufacturing and display manufacturing units with a commitment of total investment of $20.5 billion (Rs 1.53 lakh crore).
For the establishment of semiconductor manufacturing units, proposals have been received from Vedanta, which has announced a joint venture with Foxconn, IGSS Ventures, which is a Singapore-based company, and ISMC, which is headed by Next Orbit Ventures Fund, the ministry said on Saturday.
“Applications have been received for the establishment of 28 nm (nanometer) to 65 nm semiconductor fabs with a capacity of approximately 120,000 wafers per month and the planned investment of $13.6 billion in which central government fiscal support is sought for nearly $5.6 billion,” he added.
For the establishment of display manufacturing units, two applications have been received from Vedanta and Elest, with a total investment commitment of $6.7 billion and the tax support requested from the government could reach 2, $7 billion, the MeitY reported.
Last December, the Cabinet approved a Rs 76,000 crore plan for the semiconductor and display manufacturing ecosystem in the country. Under this plan, the Center has provided incentive support for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors, semiconductor packaging and semiconductor design.
Under the program, for the establishment of a complementary silicon metal oxide semiconductor, fabs that fabricate a technology node of 28nm or less will receive up to 50% of the project cost as incentive, while for more than 28 nm but up to 45 nm, the Center will provide 40% of the unit cost.
The government’s decision to encourage the establishment of semiconductor manufacturing units is significant at a time when there is a global shortage of semiconductor products. In addition, for the establishment of assembly, test, marking and packaging units for semiconductors, four companies – SPEL Semiconductor, HCL, Syrma Technology and Valenkani Electronics – have submitted applications; meanwhile, Ruttonsha International Rectifier has submitted an application under the semiconductor program for the manufacture of compound semiconductors.
Earlier this week, The Indian Express reported that the Center was targeting 2024 for the official opening of India’s first semiconductor manufacturing unit. The nod for at least one large company out of three who applied, should arrive before March 31.