Semiconductor: Five companies submit proposals to set up semiconductor and display facilities

The government said on Saturday it had received proposals from five companies to set up chip and display manufacturing factories with an investment of $20.5 billion (₹1.53 lakh crore).

A joint venture of Vedanta Foxconn, IGSS Ventures and ISMC propose to establish microchip fabs with an investment of $13.6 billion and have requested $5.6 billion in support from the Center under the Semicon program India of ₹76,000 crore, Ministry of Electronics press release and It said. Vedanta and another company, Elest, have submitted applications to set up display manufacturing projects with an investment of $6.7 billion. The tax support requested from the government is close to $2.7 billion.

“The first round of applications has been invited until February 15, for the establishment of semiconductor and display factories,” the statement said. “Despite aggressive deadlines for submitting applications in this new segment of semiconductor and display manufacturing, the program has garnered a good response.”

The Vedanta-Foxconn joint venture, IGSS Ventures and ISMC have applied to set up fabs for 28 nanometer to 65 nanometer semiconductors with a capacity of about 120,000 wafers per month.

ISM to coordinate with companies

Vedanta and Elest have sought approvals for the implementation of an 8.6 generation TFT LCD display as well as a 6th generation FAB display for the manufacture of Amoled display panels used in smartphones, according to the press release.

SPEL Semiconductor, HCL, Syrma Technology and Valenkani Electronics registered for semiconductor packaging and Ruttonsha International Rectifier registered for compound semiconductors. In addition, Terminus Circuits, Trispace Technologies, and Curie Microelectronics submitted applications for the design-related incentive program.

Candidates under the Semiconductor and Display Manufacturing programs have received recognition from the India Semiconductor Mission (ISM), which was established as an independent institution to lead the Semicon India program .

ISM will coordinate with companies that have also reached out to states to provide infrastructure access.

The ministry said the Indian semiconductor market was worth $15 billion in 2020 and is expected to reach $63 billion by 2026. The Indian display panel market is estimated at around $7 billion and is expected to reach approximately $15 billion by 2025.

ET reported on Friday that India is set to expand the application window to the semiconductor chip design and manufacturing program. Rajeev Chandrasekhar, minister of state for electronics and information technology, told ET that this was done in order to allow a large number of the world’s leading semiconductor companies to also submit their proposals.

Officials said the government was in talks with industry heavyweights such as Intel, Samsung, Global Foundries and Taiwan Semiconductor Manufacturing Company to apply under the scheme and invest in India.

“There is no deadline as such. Conversations with many world leaders are ongoing and therefore the extension of the date is certain,” Chandrasekhar said. “The government understands that this is a very time-consuming decision and made all the more so due to travel and physical meeting restrictions (due to the pandemic).”

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