The minister said that more than a dozen semiconductor design companies have received fiscal support under the scheme and have already begun working on their respective products
Ashwini made the comments during the three-day Semicon India 2024 event being held in Greater Noida from September 11 to September 13
He said that India has set a benchmark for the world regarding fast approval and kicking off construction on new semiconductor plants in the country
With the focus on design being a critical aspect of the Semicon India programme, India aims to launch 3-4 major products in the semiconductor space in coming years, union railways and electronics and IT minister Ashwini Vaishnaw said today (September 11).
Vaishnaw made the comments during the three-day Semicon India 2024 event being held in Greater Noida from September 11 to 13.
Launched in 2021, the Semicon India scheme aims to provide subsidies to companies engaged in semiconductor fabs, display fabs, chip packaging, sensors and semiconductor design, among others.
The minister further said that more than a dozen semiconductor design companies have received fiscal support under the scheme, and have already begun working on their respective products. Some of these ecosystem partners have also attracted VC interest.
Underlining that all the commissions around semiconductor plants have happened in a record time period, he said that India has set a benchmark for the world regarding fast approval and kicking off construction on new semiconductor plants in the country.
“In a very short time frame, 5 semiconductor units have been approved. Construction is rapidly under progress in the micron unit, the Morigaon Tata unit, the construction has started and in the other three units, the construction will start soon,” Vaishnaw added.
Notably, there are five semiconductor proposals at present with the total investment nearing 1.52 Lakh Cr.
Outlining the intentions to bolster India’s talent pool, Vaishnaw said, “We have committed to developing a strong talent pool of 85,000 engineers and our technicians in the next 10 years.”
For this, the minister added that the government has partnered with 113 universities, academic institutions and R&D to offer semiconductor-focused course curriculum designed by industry participants.
Vaishnaw noted that the semiconductor industry is a foundational industry which has a tremendous multiplier effect across the entire economy.
“The scale of electronics and mobile manufacturing is expanding rapidly in our country, and establishing the semiconductor units will drive exponential growth in the automobile, medical, industrial, transport, consumer electronics, practically in every manufacturing sector,” he added.
The minister added that the growth of the semiconductor industry will further deepen the prime minister’s vision of democratising access to democracy.
Vashnaw’s speech came on the sidelines of Prime Minister Narendra Modi’s speech at the same platform wherein he announced that the Centre has set up a special reserve fund with an outlay of INR 1 Lakh Cr to drive innovation in the semiconductor and science and technology sector.
Modi also pointed out that the government is taking a 360-degree approach to boost semiconductor manufacturing in the country by offering 50% fiscal support to companies in the semiconductor sector to establish semiconductor fabrication units in India.
This fiscal support forms a part of the Semicon India programme under which the government provides demand incentives to companies with the outlay of INR 76,000 Cr.
This comes at the heart of the Centre as well as state governments pushing to promote India as a global hub for semiconductor manufacturing by providing incentives to attract manufacturers. Moreover, several projects and proposals have been approved by the governments lately.
Just last week, Maharashtra’s cabinet approved Adani Group’s proposal to set up an INR 83,947 Cr ($10 Bn) semiconductor manufacturing plant with Israel’s Tower Semiconductor in the state.
In the same week, the union cabinet approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr.
It is pertinent to note that Micron is setting up a $2.75 Bn plant in Gujarat and the Tata Group is setting up two new plants in Gujarat and Assam worth INR 91,000 Cr and INR 27,000 Cr, respectively.
CG Power and Japan’s Renesas are also setting up a semiconductor plant in Gujarat’s Sanand at an estimated cost of INR 7,600 Cr.
The Centre was also said to be mulling to build a dedicated research and development unit under the proposed India Semiconductor Research Centre (ISRC).
Last year, the government set aside INR 1K Cr to fund semiconductor design startups, along with a $10 Bn allocation for semiconductor manufacturing research and design.
The government’s focus has also resulted in the emergence of a number of semiconductor startups in the country.
As per an Inc42 report, India’s semiconductor market will reach $150 Bn by 2030, up from $33 Bn in 2023, clocking an impressive CAGR of 24%.
