The Indian government announced on Saturday that it has received proposals from five companies interested in setting up semiconductor and display factories in India by making a cumulative investment of $20.5 billion which is roughly around Rs 1.53 Lakh Crore. The government had previously announced the decision to allocate Rs 76,000 crore outlay for the semiconductors and display manufacturing segment which will help boost their production in the country. The government’s decision to enhance the semiconductors and display manufacturing ecosystem in the country has come at a time when there is an acute shortage of semiconductors globally due to many disruptions in the supply chain.
The Investment Proposals Submitted
According to a report from ET Telecom, currently, the companies which have submitted proposals to set up electronic chip manufacturing plants include a joint venture of Vedanta Foxconn, IGSS ventures and ISMC. A new release from the IT ministry informs that these companies are looking to make an investment of $13.6 billion and are seeking $5.6 billion support from the centre via the Rs 76,000 crore incentive scheme. Furthermore, Vedanta and Elest have also submitted their applications to install display fab projects in the country with an investment of $6.7 billion and are seeking around $2.7 billion investment support from the government.
Previously the deadline for the submission of proposals for the silicon semiconductor manufacturing incentive scheme, the government had given the deadline of 45 days which is up to February 15. The government had also announced that it will cover up to 50% of the cost of establishing two semiconductors and two display fabs in the country. The Vedanta-Foxconn Joint Venture, IGSS ventures and ISMC have submitted their proposals to set up 28-nanometre to 65-nanometre semiconductor fabs which will have a capacity of nearly about 120,000 wafers a month.
On the other hand, Vedanta and Elest have submitted applications to set up the 8.6 TFT LCD display fab along with AMOLED display panels that are utilized in smartphones and other devices. Other companies such as HCL, SPEL Semiconductor, Syrma Technology and Valenkani Electronics have applied for semiconductor packaging while Ruttonsha International Rectifier has submitted a proposal for compound semiconductors. All the submitted proposals have also received acknowledgement from India Semiconductor Mission (ISM), an institution that has been created to lead the Semicon India Programme.