Information Technology Minister Ashwini Vaishnaw launched the India Semiconductor Mission (ISM) to attract large investments for setting up semiconductor wafer fabrication facilities in India.
- The companies that are interested are invited by the Centre for the development of the semiconductors and display manufacturing ecosystem in India.
- ISM is a specialised and independent business division within the Digital India Corporation.
- Background: On December 15, 2021, the union cabinet has approved the ‘ISM’, which will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.
Key Points:
i.Different schemes have been notified and uploaded on the website and a portal for the same has been prepared for receiving the applications. Interest companies were directed to apply from January 1, 2022, onwards.
ii.The mission was authorised to negotiate with the applicants under the semiconductor fab scheme and the display fab scheme as it was the nodal agency for the scheme implementation.
- A fab – It represents a fabrication plant where raw silicon wafers are processed and turned into integrated circuits.
iv.The mission would also decide the appropriate technology mix, applications, node generation, capacity, among others and propose the structure and quantum of fiscal support for the selected applicants.
About the Schemes:
a.Scheme for setting up semiconductor fab and the display fab:
i.Application Duration: application period will be for 45 days (i.e. till February 15, 2022) (extendable based on response).
ii.Fiscal support:
- The fiscal support of up to 50 percent of the project cost (ceiling of Rs 12,000 crore per fab) will be provided for the scheme for setting up display fabs, which aims to attract large investments for manufacturing `TFT LCD (Thin-film-transistor liquid-crystal display)’ or `AMOLED (active-matrix organic light-emitting diode)’ based display panels.
- Fiscal support will be provided on ‘pari-passu’ basis for a period of six years from the date of approval both for semiconductor fabs and display fabs.
iii.The semiconductor and display fabs set up in India will also be supported through purchase preference in the procurement of electronic products by the government under the public procurement order.
b.The scheme for setting up of compound semiconductor/silicon photonics/sensor fabs and semiconductor assembly, testing, marking and packaging (ATMP) facilities
i.Fiscal support: It would be around 30 percent of the capital expenditure investments and the fiscal support will be available for a period of five years from the date of application.
ii.The duration of the scheme for the receipt of applications is 3 years.
c.Design Linked Incentive (DLI) Scheme: This scheme offers an incentive of up to 50 percent of eligible expenditure and product deployment linked incentive of 4-6 percent on net sales for 5 years.
Recent Related News:
On December 15, 2021, Cabinet approved a production linked incentive (PLI) scheme with an outlay of Rs 76,000 crore to boost semiconductor and display manufacturing in India, making the total amount of incentives announced for the electronics sector Rs 2.30 lakh crore.
About Ministry of Electronics and Information Technology (MeitY):
Union Minister – Ashwini Vaishnaw (Constituency – Odisha)
Minister of State – Rajeev Chandrasekhar (Constituency – Karnataka)
