Five companies file proposals to build semiconductor, display factories in India

The govt had approved a fund of Rs 76,000 crore in December 2021 for the Semicon India Programme. The deadline to file proposals under this semiconductor program was February 15. Under the Semicon India Programme, the govt has received 5 applications for Semiconductor and Display Fabs with a total investment to the tune of $20.5 billion (Rs 1,53,750 crore).

The semiconductor industry has been going through one of its worst phases in the global market. This also made India realize its over-dependence on imports of semiconductors. Despite a tight time frame to apply for semiconductor fabs, the govt claims it has received a good response.

Semiconductor Fabs

Three companies that have submitted proposals to the govt include:
-Vedanta in JV with Foxconn
-IGSS ventures pte, Singapore
-ISMC

These applications have been received for setting up 28 nm to 65nm Semiconductor Fabs with an approximate capacity of 1,20,000 wafers per month. The projected investment is $13.6 billion. Financial support from the Central Government is being sought for nearly $5.6 billion.

Semiconductors are used in products ranging from simple home appliances to the latest smartphones and cars. Apart from the consumer aspect, semiconductors are required in cloud servers, industrial automation, critical infrastructure, and defence systems.

The Indian semiconductor market stands at $15 billion in 2020. According to an estimate by the govt, it is estimated to reach $63 billion by 2026. Semiconductor manufacturing is a complex, capital and technology-intensive process of fabricating semiconductor wafers.

Display Fabs

Two companies have applied to set up Display Fabs in India, these include:
-Vedanta
-Elest

The projected investment by these companies stand at $6.7 billion. The fiscal support from the Central Government is being sought for nearly $2.7 billion.

Displays constitute a significant portion of the electronic products. India’s display panel market is estimated to be $7 billion and is expected to grow to $15 billion by 2025. Under the Scheme for setting up of Display Fabs in India, applications have been filed for setting up Gen 8.6 TFT LCD Display Fab as well as 6th Generation Display FAB for the manufacturing of AMOLED display panels that are used in relatively expensive smartphones.

The applicant companies under the Semiconductor and Display Fab Schemes have been issued acknowledgment by India Semiconductor Mission (ISM) that has been set up as an independent institution to spearhead the Semicon India programme. ISM will coordinate with the applicant companies who have also reached out to states to provide access to world class infrastructure. It will work closely with the state governments to establish high-tech clusters with 300 – 500 acres of developed land, 100 KVA Power, 50 MLD Water, availability of natural gases and common facility centres for testing and certification.

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