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breaking news Five companies submit proposals of Rs 1.53 Lakh Cr to set up semiconductor and display factories

The government has received proposals from five companies for setting up factories to manufacture microchips and displays with an investment of Rs 1.53 lakh crore, an official statement said on Saturday. Vedanta Foxconn JV, IGSS Ventures, ISMC are proposing to set up microchip fab factories with an investment of USD 13.6 billion and have requested USD 5.6 billion support from the Center under the Semicon India program of Rs 76,000 crore.

“Applications have been received for the establishment of 28 nanometer (nm) to 65 nm semiconductor fabs with a capacity of approximately 120,000 wafers per month,” the statement said. The government is providing financial support of up to 40% for chips above 28nm to 45nm and up to 30% for setting up wafer fabrication units from 45nm to 65nm. Vedanta and Elest offered to create manufacturing units for screens – used in mobile phones, laptops, etc. – with a planned investment of $6.7 billion. They have requested $2.7 billion in support from the Center under India’s Billboard Factory Scheme, the statement said.

“The Indian semiconductor market stands at $15 billion in 2020 and is expected to reach $63 billion by 2026. The manufacturing process of semiconductors is a complex, capital-intensive and labor-intensive process. semiconductor wafer manufacturing technology.

“India Semiconductor Mission, which was established as a dedicated institution for the Semicon India program, received 5 applications for Semiconductor and Display Fabs with a total investment of USD 20.5 billion (INR 153,750 crore),” the statement read. .

The government closed the first round of applications for the Semicon program on Feb. 15, but will begin another round depending on industry interest. The government expects investment of about Rs 1.7 lakh crore and 1.35 lakh jobs to be created over the next four years under the Cabinet-approved semiconductor incentive scheme . Besides chip and display factories, four companies – SPEL Semiconductor, HCL, Syrma Technology and Valenkani Electronics – have registered for semiconductor packaging. Ruttonsha International Rectifier registered for compound semiconductors. Three companies – Terminus Circuits, Trispace Technologies and Curie Microelectronics – have submitted applications for the Design Linked Incentive Scheme.

“India Semiconductor Mission (ISM) will coordinate with candidate companies who have also approached states to provide access to world-class infrastructure. “It will work closely with state governments to establish high-tech clusters with 300 to 500 acres of developed land. land, 100 KVA of electricity, 50 MLD (million liters per day) of water, availability of natural gas and common facilities centers for testing and certification,” the statement read. The government will negotiate the structure and amount of tax support with applicants.

Tax assistance under the scheme is granted on a pari passu basis for a period of six years from the date of approval. Apart from tax support, semiconductor manufacturing plants set up in India will be supported by purchasing preference in the purchase of electronics by the government under the Government Procurement (Manufacturing Preference) Ordinance. India).


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