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Union Minister Ashwini Vaishnaw also said developing a semiconductor industry is not a sprint but a marathon and that the government is for it

Minister of state for electronics and IT Rajeev Chandrasekhar said at conference that Indian Semiconductor Mission is evaluating the process and the approvals will come after the due diligence is done

Bengaluru, NFAPost: Union Minister Ashwini Vaishnaw on Friday said the country is already manufacturing electronic goods worth USD 76 billion and is on the way to reaching $300 billion.

He also said developing a semiconductor industry is not a sprint but a marathon and that the government is for it.

“We are already $76 billion in electronics manufacturing and are on the way to $300 billion. The way smartphone usage and the 5G industry is growing, it’s going to see a very high growth for semiconductors in the coming years, Vaishnaw, who holds the Electronics and Communication as well as the Railways portfolio, said at the inaugural session of the Semicon India-2022 here.

About developing a semiconductor industry, he said, “we are prepared for the pursuance required. We are prepared for the sincere partnership between industry, government, academia and research, which is required for the sustained development of the semiconductor industry.”

Noting the many countries are offering incentives to the semiconductor industries, the Union Minister said India has offered a substantial incentive.

“But the big differentiator is that we are committed to create and augment our talent pool by 85,000 semiconductor professionals over the next 10 years. We have also tied up with global institutions,” the minister explained.

Almost 100 academic institutions and R&D institutions have been roped in to raise 5,000 professionals in research, 30,000 engineers and 50,000 at the lower level, Vaishnaw said.

“This is our commitment to augment our talent riding on the sincerity of our execution. Prime Minister Narendra Modi’s hallmark in his entire public life is whatever he promises, he delivers. And his team is here with you committed to participate in your journey, committed to make the difference that is needed in this world, committed to make a very reliable supply chain in all this uncertain time of geopolitical uncertainty,” the Union Minister told the industry.

Approval to electronic chip makers likely in 6-8 months: Vaishnaw

The government expects to grant approvals to electronic chip makers in the next 6-8 months as it looks to encourage domestic manufacturing of semiconductors, union minister Ashwini Vaishnaw said on Friday.

Speaking at the SemiconIndia 2022 conference here, Vaishnaw said it will be done in “the next 6-8 months”.

Minister of state for electronics and IT Rajeev Chandrasekhar said at the conference that Indian Semiconductor Mission is evaluating the process and the approvals will come after the due diligence is done.

The government has received proposals from five companies for setting up electronic chip and display manufacturing plants with investment of Rs 1.53 lakh crore.

Vedanta Foxconn JV, IGSS Ventures, ISMC propose to set-up electronic chip manufacturing plants with USD 13.6 billion investment and have sought support of USD 5.6 billion from the Centre under the Rs 76,000 crore Semicon India Programme.

Vedanta and Elest have proposed to set up display manufacturing units — used in mobile phones, laptops etc — with projected investment of USD 6.7 billion. They have sought support of USD 2.7 billion from the Centre under the scheme for setting up display fabs in India, the statement said.

The government expects investments of around Rs 1.7 lakh crore and 1.35 lakh jobs to be created in the next four years under the incentive scheme for semiconductors approved by the Cabinet.

Besides electronic chip and display plants, four companies — SPEL Semiconductor, HCL, Syrma Technology and Velankani Electronics — have registered for semiconductor packaging. Ruttonsha International Rectifier has registered for compound semiconductors.

Three companies — Terminus Circuits, Trispace Technologies and Curie Microelectronics — have submitted applications under the Design-Linked Incentive Scheme.

The government will negotiate the structure and quantum of fiscal support with the applicants. The fiscal support under the scheme shall be provided on pari-passu basis for a period of six years from the date of approval.

Apart from fiscal support, semiconductor fabs set up in India will be supported through purchase preference in procurement of electronic products by the government under the Public Procurement (Preference to Make in India) Order.

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