Five proposals worth $20.5-billion to set up chip, display fabrication units

“The applications have been received for setting up 28 nm (nanometer) to 65 nm semiconductor fabs with capacity of approx 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,” it added.

For setting up of display fabrication units, two applications have been received from Vedanta and Elest, with total investment commitment of $6.7 billion and the fiscal support sought from the government could be up to $2.7 billion, the MeitY said.

Last December, the Cabinet had approved a Rs 76,000-crore plan for semiconductor and display manufacturing ecosystem in the country. As a part of the plan, the Centre has lined up incentive support for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging and semiconductor design.

As a part of the scheme, for setting up of silicon complementary metal oxide semiconductor, fabrication units that manufacture technology node of 28 nm or lower will get up to 50 per cent of the project cost as incentive, while for above 28 nm but up to 45 nm, the Centre will provide 40 per cent of the unit cost.

The government’s move to incentivise setting up of semiconductor fabrication units assumes significance at a time when there is a global shortage of semiconductor products. Further, for setting up of semiconductor assembly, testing, marking and packaging units, four companies — SPEL Semiconductor, HCL, Syrma Technology and Valenkani Electronics — have submitted applications; meanwhile, Ruttonsha International Rectifier submitted application under the semiconductor scheme for manufacturing of compound semiconductors.

Earlier this week, The Indian Express reported that the Centre was targeting 2024 for the formal opening of India’s first semiconductor fabrication unit. The nod for at least one major company among three that have applied, is likely to come before March 31.