India Semiconductor Mission

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India Semiconductor Mission

  • This vision of AtmaNirbharta in electronics & semiconductors was given further momentum by the Semicon India programme.
  • It is approved with a total outlay of INR 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in our country.

Semicon India programme

  • The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems.
  • This will serve to pave the way for India’s growing presence in the global electronics value chains.

India Semiconductor Mission (ISM)

  • It is set up as an Independent Business Division within Digital India Corporation.
  • It has administrative and financial autonomy to formulate and drive India’s long-term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem.
  • Envisioned to be led by global experts in the Semiconductor and Display industry, ISM will serve as the nodal agency for efficient, coherent and smooth implementation of the schemes.
  • The Vision of ISM is to build a vibrant semiconductor and display design and innovation ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design.
  • India Semiconductor Mission (ISM) is of paramount importance to organize efforts for promoting semiconductors and display industry in a more structured, focused, and comprehensive manner.
  • It will formulate a comprehensive long-term strategy for developing semiconductors & display manufacturing facilities and semiconductor design ecosystem in the country in consultation with Government ministries/departments/agencies, industry, and academia.
  • It will facilitate the adoption of trusted electronics through secure semiconductors and display supply chains, including raw materials, specialty chemicals, gasses, and manufacturing equipment.
  • It will enable a multi-fold growth of the 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.
  • It will also promote and facilitate indigenous Intellectual Property (IP) generation and encourage, enable and incentivize Transfer of Technologies (ToT).
  • ISM will also enable collaborations and partnership programs with national and international agencies, industries and institutions for catalyzing collaborative research, commercialization and skill development.

4 schemes under programme

Scheme for setting up of Semiconductor Fabs in India

  • It provides fiscal support to eligible applicants for the setting up of Semiconductor Fabs, aimed at attracting large investments for setting up semiconductor wafer fabrication facilities.
  • Fiscal support under the scheme:
  1. 28nm or Lower - Up to 50% of the Project Cost
  2. Above 28 nm to 45nm - Up to 40% of the Project Cost
  3. Above 45 nm to 65nm - Up to 30% of the Project Cost

Scheme for setting up of Display Fabs in India

  • It provides fiscal support to eligible applicants for the setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country.
  • The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab.

Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India

  • The Scheme provides a fiscal support of 30% of the Capital Expenditure to the eligible applicants for setting up of:
  1. Compound Semiconductors/Silicon Photonics(SiPh)/Sensors (including MEMS) Fab
  2. Semiconductor ATMP/OSAT facilities in India.

Design Linked Incentive (DLI) Scheme

  • It offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for:
  1. Integrated Circuits (ICs),
  2. Chipsets,
  3. System on Chips (SoCs),
  4. Systems & IP Cores,
  5. Semiconductor linked design.
  • The scheme provides Product Design Linked Incentive of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and Deployment Linked Incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.