According to union minister Ashwini Vaishnaw, the government anticipates approving electronic chip companies in the next 6 to 8 months to promote local semiconductor production. Vaishnaw stated that it will be finished in “the next 6-8 months”. He was speaking at the Semicon India-2022 conference about semiconductor chip manufacturing in India.
Five businesses have submitted applications to the government for the establishment of production facilities for electronic chips and displays with a combined investment of Rs 1.53 lakh crore.
Rajeev Chandrasekhar, a minister of state for electronics and IT, stated during the conference that the Indian Semiconductor Mission is reviewing the procedure and that the approvals would follow once the due diligence has been completed.
Vedanta Foxconn JV, IGSS Ventures, and ISMC are amongst the top companies that want to invest USD 13.6 billion in the construction of electronic chip manufacturing facilities. They have asked the Center for USD 5.6 billion in support as part of the Rs 76,000 crore Semicon India Programme.
With a projected investment of USD 6.7 billion, Vedanta and Elest have proposed to establish display manufacturing facilities, which are used in mobile phones, laptops, and other devices. According to the announcement, they have asked the Center for funding totaling USD 2.7 billion as part of the plan to establish display fabs in India.
Under the incentive programme for semiconductors that was authorized by the Cabinet, the government anticipates investments of about Rs 1.7 lakh crore and the creation of 1.35 lakh jobs over the following four years.
What companies are in the game?
Four businesses, including SPEL Semiconductor, HCL, Syrma Technology, and Velankani Electronics, have applied for semiconductor packaging in addition to electronic chip and display operations. On the other hand, Ruttonsha International Rectifier has applied for Compound semiconductors.
Applications for the Design-Linked Incentive Scheme have been made by three businesses: Terminus Circuits, Trispace Technologies, and Curie Microelectronics.
The government is keen to discuss the format and amount of financial support with the applicants.
From the date of approval, the budgetary support under the plan must be offered on a pari-passu basis for six years.
In addition to financial help, the government would give Indian semiconductor fabs precedence in the acquisition of electronic products under the Public Procurement (Preference to Make in India) Order.
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