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Centre to extend support beyond $10 billion to semiconductor sector in case of more proposals

The $10 billion plan was revealed by Prime Minister Narendra Modi last year, where the government would cover as much as 50 percent of the project cost in a bid to attract companies to invest in the country.

April 29, 2022 / 04:45 PM IST
[Representative image: Shutterstock]

[Representative image: Shutterstock]

The Centre will extend further support beyond the initial $10 billion to attract the semiconductor industry if there are more proposals and this first round gets closed, said Ashwini Vaishnaw, Union IT minister.

Speaking to the media persons at the Semicon India 2022 event, Ashwini Vaishnaw, Union IT minister, said, “This $10 billion incentive package is the first tranche. But as it progresses and the first tranche gets closed, we will definitely go from there. We have an appetite for more.”

According to him, developing the semiconductor industry in India is the 20-year roadmap, and the government is open to investments in the area.

The $10 billion plan was revealed by Prime Minister Narendra Modi last year, where the government would cover as much as 50 percent of the project cost in a bid to attract companies to invest in the country.

So far the government has received five proposals in the first round with a total investment to the tune of $20.5 billion for designing semiconductor and display fabs. This includes Vedanta in a joint venture with Foxconn, Singapore-based firm IGSS ventures Pte, and ISMC, a consortium of multiple players.

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Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology, said that these proposals will be evaluated in six to eight months. The government is also in talks with international players such as Intel to set up semiconductor plants in the country.

The government is also looking at addressing concerns raised by these companies. Vaishnaw said that the primary concerns raised by companies are around supply chains. Vaishnaw explained that they started working on these concerns to ensure that the ecosystem was in place. “We are also learning from the experience in the two small labs that are functioning and inputs the companies have given us,” the IT minister said.

“When the company finally decides to take the plunge, we already have an ecosystem in place,” Vaishnaw added.

The company has significant plans for developing the talent ecosystem in the country in the semiconductor space.

Close to 100 academic institutions and R&D organisations have been roped in to train 5,000 professionals in research, 30,000 engineers in BTech and MTech, and 50,000 at floor level. “So this is a very big commitment to augment our talent nation status,” Vaishnaw said.

The minister further said that India is home to 20 percent of the world's VLSI design engineers and 250 semiconductor design companies are working out of India. There are about 24,000 design engineers who have designed more than 2,000 chips every year, the Union IT minister added.



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Moneycontrol News
first published: Apr 29, 2022 03:41 pm
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