Among the 12 approved proposals, three companies — Micron, Kaynes and CG Semi — have already started commercial production, while another one is gearing up to start in coming months.
Image: IANS
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the ‘Semicon 2.0’ scheme for the development of India’s semiconductor design and manufacturing ecosystem, with a total budget outlay of ₹1,27,500 crore.
Till date, as many as 12 manufacturing units have been approved with a cumulative investment of more than ₹1.64 lakh crore. Among these include one silicon fab, one silicon carbide fab, an integrated gallium nitride micro LED display fab as well as nine packaging units. These are aimed at catering chip requirements of key sectors like consumer appliances, industrial electronics, automobiles, power electronics and telecommunications among others.
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Among the 12 approved proposals, three companies — Micron, Kaynes and CG Semi — have already started commercial production, while another one is gearing up to start in coming months.
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“Recognising the requirement for a sustained and long-term support to Semiconductor sector in India and also to build on the momentum generated under Semicon1.0, Semicon 2.0 aims to further the Government’s commitment towards putting our country on the semiconductor map of the world,” read a statement.
Also, two dozen semiconductor design projects from start-ups and MSMEs were approved for financial support. Moreover, 105 star-ups/MSMEs have been granted access to industry-standard Electronic Design Automation (EDA) tools, IANS reported.
The official statement noted that the Semicon 2.0 is aimed at building the semiconductor ecosystem on six pillars.
1. Design: Semicon 2.0 will build upon the initial success received in chip design. With 105 startups already started developing chips, the focus is now on deepening the design ecosystem. Moreover, building blocks have been identified to develop strategic and commercial products.
2. Machines and materials: Those companies, which are involved in the manufacturing and R&D of the machines and manufacturing of materials, chemicals and gases that are essential for manufacturing semiconductors will get incentivized. This is aimed at laying the foundation for the sustainable growth of the semiconductor industry.
3. Setting up more fabs: The first fab will be commissioned in 2028, while the world is “showing greater confidence in India’s semiconductor strategy,” the statement read. It added that efforts will be made to attract more manufacturers to come to India and set up fabs to manufacture chips.
4. Further strengthening the ATMP/OSAT industry: The world now looks upon India as an alternative location for setting up ATMP/OSAT units. The government looks forward to actively encourage them with a focus on getting some of the most advanced ATMP technologies to the country.
5. Research & Development: With semiconductor journey beginning with 28nm-110nm as the node, the focus now will be on developing more advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India.
6. Talent development: Nearly 68,000 students have already been trained on complex chip design using the latest EDA tools. The industry will be actively engaged in deepening the clean room, fab construction and other ecosystem training as well.
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