The India Semiconductor Mission (ISM), an Independent Business Division within Digital India Corporation, has been tasked with the responsibility of catalysing India's semiconductor ecosystem in manufacturing, packaging, and design. With all the administrative and financial powers, ISM aims to develop a sustainable semiconductor and display manufacturing facility and semiconductor design ecosystem in the country through various schemes and initiatives.

 

Objectives of ISM

 

ISM has formulated a comprehensive long-term strategy for developing a sustainable semiconductor and display manufacturing facility and semiconductor design ecosystem in the country, in consultation with the Government ministries/departments/agencies, industry, and academia. The main objectives of ISM are as follows:

 

1. Facilitate the adoption of secure microelectronics and developing trusted semiconductor supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment.

 

2. Enable a multi-fold growth of Indian semiconductor design industry by providing requisite support in the form of Electronic Design Automation (EDA) tools, foundry services, and other suitable mechanisms for early-stage startups.

 

3. Promote and facilitate indigenous Intellectual Property (IP) generation.

 

4. Encourage, enable, and incentivize Transfer of Technologies (ToT).

 

5. Establish suitable mechanisms to harness economies of scale in the Indian semiconductor and display industry.

 

6. Enable cutting-edge research in semiconductors and display industry including evolutionary and revolutionary technologies through grants, global collaborations, and other mechanisms in academia/research institutions, industry, and through establishing Centres of Excellence (CoEs).

 

7. Enable collaborations and partnership programs with national and international agencies, industries, and institutions for catalysing collaborative research, commercialization, and skill development.

 

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Semicon India Programme

 

The Government has approved the Semicon India programme with a total outlay of INR 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in the country. The programme aims to provide financial support to companies investing in semiconductors, display manufacturing, and design ecosystem, thereby paving the way for India's growing presence in the global electronics value chains.

 

The programme has been modified in view of the aggressive incentives offered by countries already having established a semiconductor ecosystem and limited number of companies owning the advanced node technologies. Following four schemes have been introduced under the aforesaid programme:

 

1. Modified Scheme for setting up of Semiconductor Fabs in India for attracting large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain. The Scheme extends fiscal support of 50% of the project cost on a pari-passu basis for setting up of Silicon CMOS based Semiconductor Fab in India.

 

2. Modified Scheme for setting up of Display Fabs in India for attracting large investments for manufacturing TFT LCD or AMOLED based display panels in the country to strengthen the electronics manufacturing ecosystem. Scheme extends fiscal support of 50% of Project Cost on a pari-passu basis for setting up of Display Fabs in India.

 

3. Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India shall extend fiscal support of 50% of the Capital Expenditure on Pari-passu basis for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab/ Discrete Semiconductor Fab and Semiconductor ATMP / OSAT facilities in India.

 

4. Semicon India Future Design: Design Linked Incentive (DLI) Scheme offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. The scheme is expected to boost the development of local semiconductor design capabilities, which are crucial for creating a self-reliant semiconductor ecosystem in India.

 

In addition to the DLI scheme, the Modified Scheme for setting up of Semiconductor Fabs in India, Modified Scheme for setting up of Display Fabs in India, and Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India are expected to attract significant investments in the semiconductor manufacturing ecosystem in India.

 

The Semicon India programme is expected to create around 1,00,000 direct and indirect jobs in the semiconductor and display manufacturing industry and promote innovation in the semiconductor design ecosystem. With the increasing focus on local manufacturing and self-reliance, the Indian semiconductor industry is poised for significant growth in the coming years.

 

In conclusion, the India Semiconductor Mission is an important initiative by the government to catalyze the development of the semiconductor ecosystem in India. With the various schemes and incentives offered under the Semicon India programme, the government aims to attract investments in semiconductor and display manufacturing, promote local innovation in semiconductor design, and create a self-reliant semiconductor ecosystem in the country. The success of these initiatives will not only boost the Indian semiconductor industry but also create job opportunities and promote innovation in the electronics manufacturing sector.