India has received offers for semiconductor and display fabs totaling Rs 1.5 lakh billion

The Union government’s Semicon India Program, which aims to develop the country’s semiconductor and display ecosystem, has sparked widespread interest among businesses, with more than 1.53 lakh crore in proposals received in the first round, which ended on February 15.

The ministry of electronics and information technology (MeitY) said in a statement Saturday that five proposals for semiconductor and display fabs had been received, with a total investment of over $20.5 billion (153,750 crore).

“Despite stringent timelines for submission of applications in this greenfield region of semiconductor and display production,” the ministry noted, “the programme has aroused a good response.”

Vedanta has submitted bids for semiconductor fabs worth $13.6 billion in a joint venture with Foxconn, IGSS Ventures Pte, Singapore, and ISMC. Applications have been received for the construction of 28 nm-65 nm semiconductor fabs with a monthly capacity of 120,000 wafers, with the central government requesting $5.6 billion in funding.

According to the government, Vedanta and another business, Elest, have applied for display fabs with a projected investment of $6.7 billion. The federal government is being asked for $2.7 billion in financial assistance.

Under the scheme for compound semiconductors, silicon photonics, sensors fab, and semiconductor assembly, testing, marking, and packaging or ATMP and OSAT facilities, SPEL Semiconductor Ltd, HCL, Syrma Technology, and Valenkani Electronics have registered for semiconductor packaging, while Ruttonsha International Rectifier Ltd has registered for compound semiconductors.

Separately, Terminus Circuits, Trispace Technologies, and Curie Microelectronics have applied for the Design Linked Incentive (DLI) programme, which has sparked interest among local businesses and entrepreneurs. As part of their bids, the applicant corporations have also presented suggestions for technology acquisition, partnerships, and cooperation with research institutes, according to the government.

SCL Mohali has also been turned over to MeitY from the Department of Space following the Union cabinet’s permission, and it is being opened up as a commercial fab for expanded involvement by Indian semiconductor design businesses, according to the ministry.

Semiconductors are important components of producing electronic products ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure, and defence systems, and the Indian semiconductor market is predicted to reach $63 billion by 2026.

Applications have been filed for the establishment of Gen 8.6 TFT LCD Display Fab and 6th Generation Display FAB under the scheme for the establishment of display fabs in India for the manufacture of state-of-the-art AMOLED display panels that are used in advanced smartphones under the scheme for the establishment of display fabs in India. The display panel market in India is predicted to be worth $7 billion, with a forecast of $15 billion by 2025.

“The India Semiconductor Mission (ISM), which was established as an independent entity to spearhead the Semicon India initiative, has granted recognition to the applicant companies under the semiconductor and display fab programmes,” the ministry stated.

ISM will work closely with state governments to establish high-tech clusters with 300-500 acres of developed land, 100 KVA power, 50 MLD water, natural gas availability, and common facility centres for testing and certification, according to the ministry in a statement.

“With over 50,000 design specialists and numerous design services businesses, India is one of the most attractive countries for semiconductor design.” In the previous five years, India has designed around 2000 integrated circuits and chips,” the government added.

Companies’ eager participation in the 76,000 crore initiative will almost certainly result in the development of a robust and long-term semiconductor and display ecosystem in the country. According to the ministry, it is intended to enhance the Indian economy and develop a qualified pool of personnel as well as major job creation.