Investment

Government Policy

The Government of India supports semiconductor manufacturing through a comprehensive fiscal, infrastructure, design, and ecosystem-development framework, anchored under the Semicon India Programme and implemented by the India Semiconductor Mission (ISM).

I. Central Government Policies:

The Scheme for setting up semiconductor and display manufacturing in India provides fiscal support of 50% of the project cost on a pari-passu basis to the approved applicants.

  1. Semiconductor Fabs
  2. Display Fabs
  3. Compound Semiconductors ATMP / OSAT
  4. Design Linked Incentive etc
  5. 10 Billion ISM
  6. 10 Billion – MeitY Scheme
  7. 10 Billion PLI
II. State Government Policies:

Many state policies share common incentive elements that complement Centre initiatives such as Semicon India, SPECS and Production Linked Incentive (PLI) schemes.

  1. Uttar Pradesh Semiconductor Policy 2024
  2. Gujarat Semiconductor & Electronics Policy
  3. Tamil Nadu Semiconductor & Advanced Electronics Policy
  4. Karnataka Semiconductor Incentives
  5. Maharashtra State Electronics & Semiconductor Support
  6. Odisha
  7. Andhra Pradesh
III. Others:
  1. Promotion of manufacturing of Electronic Components and Semiconductors (SPECS)
  2. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing

Semicon India Programme

# Organization Project Name Project Type Location Technology Partner Investment Capacity Technology Expected Employment Products Applications
1 Micron Semiconductor Technology ATMP Sanand, Gujarat In-house (USA) ₹22,516 crore 1,352 MN units per year Flip-Chip and Wirebond. ~ 20,000 jobs DRAM components/modules, NAND components, SSDs Mobile phones, laptop, servers, automobiles, other consumer electronics
2 Tata Semiconductor Manufacturing Semiconductor Fab Dholera, Gujarat PSMC (Taiwan) ₹91,526 crore 50,000 wafer starts per month (WSPM) 12″ CMOS ranging from 28nm to 110nm. ~ 20,000 jobs PMIC, logic & display drivers Mobile Phones, automobiles, consumer electronics,communications, display drivers for PCs, tablets, TVs, and commercial screens
3 Tata Semiconductor Assembly and Test OSAT Morigaon, Assam In House (India) ₹27,120 crore 15,600 MN units per year Wirebond, Flip-Chip, ISP ~ 26,000 jobs QFN, QFP, TSOP, TO, WB-BGA, FC BGA, SiP Automotive, EVs, consumer electronics, telecom, mobile
4 CG Power and Industrial Solutions OSAT Sanand, Gujarat Renesas (Japan), and Stars Microelectronics (Thailand) ₹7,584 crore 4,044 MN units per year Wirebond & Flip-Chip ~ 5,000 jobs QFN, QFP, BGA, FCBGA, FC CSP Consumer electronics, industrial, automotive, power applications, etc.
5 Kaynes Semicon ATMP Project Sanand, Gujarat Globetronics, Malaysia & AOI (Japan) ₹3,307 crore 2,310 MN units per year Wirebond, Flip-Chip, Photonics ~ 2000 jobs QFN, SOT-223, TO-220, BGA, stacked BGA, FCBGA, SiP, photonics Power devices, communications, automotive, EV, computing, industrial
6 India Chip (HCL-Foxconn JV) OSAT (ADVANCE PACKAGING) Yeida, Uttar Pradesh Hon Hai Technology (Foxconn) (Taiwan) ₹3,706 crore 432 MN units per year Wafer-Level Packaging (Au bump) ~ 4000 jobs Display Driver ICs (Wafer level packaging), Chip Probing Services, Die Processing Services (DPS) Displays for Mobiles, Tablets, Automobile etc.
7 Advanced System in Package Technologies OSAT Andhra Pradesh APACT (South Korea) ₹469 crore 96 MN units per year Wirebond & Flip-Chip ~ 500 Jobs QFN & FCBGA Mobile phones & ICs for set top boxes, automobile applications & other electronic products.
8 SICSEM Compound fab and ATMP Bhubaneswar, Odisha Clas-SiC (UK) & CDIL (India) ₹2,067 crore 96 MN units per year SiC MOSFET & Diode Fab & Packaging ~ 1000 Jobs Power MOSFETs & diodes EVs, solar, space, defense, high-voltage.
9 3D Glass Advance Packaging Bhubaneswar, Odisha In-house (USA) ₹1,944 crore 120 MN units per year Glass substrate ATMP & 3DHI modules ~ 284 Jobs FCBGA, ICS, RF SiP, AiP, glass interposers HPC/AI compute, RF, automotive, sensors, quantum, bio-med
10 Continental Device India OSAT Mohali, Punjab In-house (India) ₹118 crore 158 MN units per year Advanced SiC & high-power diode packages ~ 250 Jobs MOSFETS, IGBTs Schottky Bypass Diodes, Bipolar Junction Transistors (TO247, D2PAK, DPAK, Schottky diodes) Automotive, Renewable Energy Systems , Consumer electronics, industrial.

Design Linked Incentive (DLI)

# Organization Project Name Project Outlay (in Lakhs ₹) Location
1 Fermionic Design Pvt. Ltd. A 4-channel Mux-Demux Gain Phase Shifter for Hybrid Beamformer in 8-12GHz for satellite communication and 5G Antenna Array systems 1047.19 KARNATAKA
2 Morphing Machines Pvt. Ltd. SoC, IP and Acclerator card powered by REDEFINE architecture and Ecosystem 2048.83 KARNATAKA
3 Calligo Technologies Pvt. Ltd. SoC with RISC V and POSIT Coprocessor based Accelerator Card with Software Ecosystem 4192.75 KARNATAKA
4 Sensesemi Technologies Pvt. Ltd. SenseSoC-200 SoC for IOT and Medical Applications 3907.02 KARNATAKA
5 Saankhya Labs Pvt. Ltd. SoC for Baseband Processing for 5G Telecom infrastructure 2558.77 KARNATAKA
6 Aryabhata Circuits and Research Labs Pvt. Ltd. Next Generation IC for Advanced Tire Monitoring System (TMS) 4095.49 KARNATAKA
7 BigEndian Semiconductors Pvt. Ltd. SoC for Video Audio Surveillance Unit, Design and Development 3108 KARNATAKA
8 C2i Semiconductors Pvt. Ltd. A Digital Multiphase Controller IC for Enterprise Server Power 8375.2 KARNATAKA
9 MMRFIC Technology Pvt. Ltd. Indigenous Ka-Band Beamformer RADAR Chip 1253.04 KARNATAKA
10 Sophrosyne Technologies Pvt. Ltd. High-precision, Ultra-low-power SoC for real-time monitoring of cardiac activity and other vital health parameters 2147.1 KARNATAKA
11 Aagyavision Pvt. Ltd. Radar RF chips for edge applications 2547.9 KARNATAKA
12 Aheesa Digital Innovations Pvt. Ltd. VEGA Processor based GPON ONT and Network SoC for FTTX and Broadband applications 4140 TAMIL NADU
13 Mindgrove Technologies Pvt. Ltd. Vision SoC using Shakti processor for Edge Computing 4786.11 TAMIL NADU
14 InCore Semiconductors Pvt. Ltd. RISC-V multi-core super scalar processor for smartphones and edge AI. 1743 TAMIL NADU
15 MBit Wireless Pvt. Ltd. Dualmode LTE Cat bis and NBIoT Baseband chipset for IoT applications 6536 TAMIL NADU
16 Netrasemi Pvt. Ltd. A High-End Edge-AI SoC with on-chip video analytics and vector processing computing. 4430 KERALA
17 Netrasemi Pvt. Ltd. Development of ML Acceleration chip with Programmable Hardware Infrastructure for Robots, Drones, Industrial automation and Video Analytics systems (64 TOPS AI performance) on 12nm, TSMC 6125 KERALA
18 Green PMU Semi Pvt. Ltd. Energy-Harvesting power management Chip for IoT applications 986 TELANGANA
19 WiSig Networks Pvt. Ltd. A 5G NB-IoT based SoC for Terrestrial and Satcom Applications 2555.57 TELANGANA
20 MosChip Technologies Pvt. Ltd. Smart Energy Meter IC-VIDYUT 4000 TELANGANA
21 Multi Nano Sense Technologies Pvt. Ltd. MEMS Platform Gas Sensors and CMOS Data Acquisition AFE SoC 2953 MAHARASHTRA
22 Vervesemi Microelectronics Pvt. Ltd. A Mixed Signal Microcontroller for Motor Control and Smart Power Applications 2964 UTTAR PRADESH
23 Incise Infotech Limited A Linear LED Driver IC. 428 UTTAR PRADESH
24 DV2JS Innovation LLP LowLight Image Sensor with SinglePhoton Detection for Security, Surveillance, Automobile Cameras 748 DELHI

Semiconductor Laboratory (SCL)

Semi-Conductor Laboratory (SCL), an autonomous body under the Ministry of Electronics and Information Technology (MeitY), Government of India, is the only Integrated Device Manufacturing Facility in the country providing end-to-end solutions for Development of Application Specific Integrated Circuits (ASICs), Opto-electronics devices, and Micro Electro Mechanical System (MEMS) Devices encompassing Design, Fabrication, Assembly, Packaging, Testing, and Reliability Assurance.

Formerly known as Semiconductor Complex Limited, a Government of India enterprise, it was converted into Semi-Conductor Laboratory under the Department of Space, Government of India, w.e.f. September 1, 2006. Administrative control of SCL, Society was transferred from the Department of Space (DoS) to the Ministry of Electronics and Information Technology (MeitY) vide notification No. 1/21/1/2022-Cab dated February 07, 2022.

SCL has an 8" wafer fab line qualified to the JEDEC-JP001A standard with a 180 nm CMOS technology node. SCL also has a 6" fab line for MEMS development and is expanding it to include a compound semiconductor fabrication facility. Process capability at SCL enables a 1.8V, 1.8/3.3V, or 1.8V/5V power-supply solution with 4-6 Al-metal layers and analog modules. The VLSI design domain in SCL spreads over analog, digital, mixed-signal, memory, RF-CMOS, and optoelectronic in the form of silicon-proven and space-qualified ASICS, ASSPs, SoCs, SCL excels in developing ceramic packages and meets the demanding test requirements at the wafer and package level, along with test plan development for high-pin-count integrated circuits, RF, and MEMS devices. At SCL, quality and reliability assurance adhere to global performance specifications such as MIL-PRF-38535, JEDEC-JP001A, and MIL-STD-883. SCL possesses capabilities in power, water, and air management, bulk, and specialty gas distribution systems. The quality parameters of Ultra Pure Water (UPW) and bulk gases produced at SCL are at par with international standards. SCL brings decades of experience to provide customers with unparalleled microelectronics solutions in India. SCL is also engaged in the fabrication of Hi-Rel boards, Radio systems, and the indigenization of electronic subsystems.

State Approved Projects

  1. RIR
  2. Nanolabs (6)
  3. National Lab
  4. Sharashtra

Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors (SPECS)

Production Linked Incentive Scheme (PLI)

Electronics Component Manufacturing Scheme (ECMS)

Policy & Strategy Reports

a) Policy & Strategy :
  1. National semiconductor roadmap
  2. Incentive structure & eligibility
  3. Gap analysis vs global ecosystem
  4. Design Linked Incentive etc
b) Scheme Performance & Outcome Reports
c) Investment & Market Reports
d) Customs, Trade & Logistics Reports
e) International Cooperation & MoU-MoCs:

Investment Committed with India like AM, Merc, LAM, Fujifilm i.e. related to Semiconductor Investment and R&D.

VI. Voices of Our Global Leaders

Authorized Economic Operator (AEO)

Benefits associated with AEO

Tier T1
  1. High facilitation
  2. DPD/DPE
  3. BG 50%
  4. Expedited investigation-dispute resolution
  5. On request 24 x 7 at all sea-ports and airports
  6. OSPCA once a year
  7. ID cards/Space in warehouse
  8. Email on arrival/departure
Tier T2
  1. All facilities of Tier 1 Plus
  2. Higher facilitation
  3. Deferred duty payment
  4. MRA benefits in other countries
  5. Waiver of seal verification
  6. Priority in scanning/assessment
  7. 25% BG
  8. On-site inspection/stickers
  9. Refund/rebate in 45 days
  10. Faster drawback
  11. Client Relation Manager
  12. OSPCA in 2 years
Tier T3
  1. All facilities of Tier II PLUS
  2. Highest facilitation
  3. Scanning only on intelligence
  4. Reliance on self certified copies
  5. No Bank Gaurantee
  6. Risk based intervention by other departments
  7. Refund/rebate in 30 days
  8. OSPCA in 3 years
AEO-LO
  1. Logistic Service Providers
  2. Custodians or Terminal Operators
  3. Customs Brokers
  4. WarehouseOperators

Mutual Recognition Agreement (MRA)

Benefits of MRA

  • 1. Lower Risk Score
    • Both Customs and AEO companies are considered trusted members of the trade community whose security standards have been validated by either of the partner Customs Administrations. Therefore, AEO exporters/importers are given a reduction in their risk score by partner Customs Administrations, which will translate into fewer examinations at the port of importation.
  • 2. Risk Assessment Tool
    • The status of the MRA partner’s AEO programme’s participant is recognized by each other and is used as a risk-assessment factor.
  • 3. Less Redundancy / Duplication of Efforts
    • Traders do not have to go through two or more separate validation visits. The initial validation conducted by the local Customs Administration as being certified under respective AEO programme would be recognized by other MRA partner countries.
  • 4. Common Standard / Trade Facilitation
    • Since Mutual Recognition is based on having equally stringent minimum security criteria, one country’s AEO essentially complies with the security criteria of those countries with which it has achieved an MRA with. Common standards among programmes will also aid companies in conducting and documenting their security self-assessments.
  • 5. Transparency
    • Closer collaboration among and between Customs Administrations and their AEO programmes participants will lead to more transparency in international commerce. Information exchanged between these partners expedites and facilitates the movement of commerce across nations.

Others

a) Other key policies/schemes:

Relevant to international companies setting up semiconductor manufacturing in India.

b) Industrial infrastructure support:

EMC 2.0 (Modified Electronics Manufacturing Clusters)