Government invites applications for setting up Semiconductor and Display Fabs as per Modified Semicon India Programme from June 1, 2023

The applications will be received by India Semiconductor Mission, the designated nodal agency tasked with implementing the Modified Semiconductor India Programme  

Under the Modified Semicon India Programme, the Central government has decided to welcome new applications for the establishment of Semiconductor Fabs and Display Fabs in India beginning June 1, 2023. The applications will be received by India Semiconductor Mission, the designated nodal agency tasked with implementing the Modified Semiconductor India Programme for the development of India's semiconductor and display manufacturing ecosystem, according to a statement from the Ministry of Electronics and IT. The India Semiconductor Mission (ISM) is in charge of leading the country's Rs 1000 crore semiconductor manufacturing push.  

Applications are expected from both new and existing investors. Previously, Rajeev Chandrasekhar, India's Minister of State for Skill Development and Entrepreneurship, tweeted that the first window for more expensive 28nanometer fabs was kept open for 45 days only in January 2022, and received 3 applications that were evaluated by ISM in its Advisory group. The strategy is to also encourage mature nodes of less than 40nanometer wherein current and new players are expected to apply in various nodes that they have technology for.  

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According to the government, a fiscal incentive of 50 per cent of the project cost is available to companies/consortia/ joint ventures for the establishment of Semiconductor Fabs in India of any node (including mature nodes) under the updated programme. Similarly, a fiscal incentive of 50 per cent of the project cost is provided for the establishment of Display Fabs of certain technologies.  

The "Modified Scheme for Establishing Compound Semiconductors / Silicon Photonics / Sensors Fab/Discrete Semiconductors Fab and Semiconductor ATMP/OSAT Facilities in India" application window will be active until December 2024. The Design Linked Incentive Scheme application period is also available until December 2024. "To date, 26 applications have been received under the DLI Scheme, and five applications have been approved," it stated.  

The Semicon India Programme, with a budget of Rs 76,000 crore, was started by the government in December 2021. In September 2022, the programme was updated to make it more competitive. The amended programme offers fiscal support equal to 50 per cent of project costs for all technology nodes under the scheme for the establishment of Semiconductor Fabs, Display Fabs and Compound Fabs.