Executive Summary:
The Indian government introduced the Semicon India Programme with an outlay of Rs 76,000 crore to promote semiconductor manufacturing. The program offers financial support for establishing semiconductor fabs, display fabs, and design linked incentives. The scheme is pan-India, with states aligning their policies accordingly, and applications are evaluated based on technical and financial aspects. The initiative also includes workforce development programs like the Chips to Startup (C2S) program and collaborations with educational institutions to train skilled manpower.
Key Points / Main Content:
Fiscal Support under Semicon India Programme:
* 50% of project cost for setting up Silicon CMOS based Semiconductor Fabs, Display Fabs.
* 50% of Capital Expenditure for Compound Semiconductors, Silicon Photonics, Sensors, Micro ElectroMechanical Systems Fab, Discrete Semiconductor Fab, Semiconductor Assembly, Testing, Marking and Packaging (ATMP), and Outsourced Semiconductor Assembly and Test (OSAT) facilities.
* Design Linked Incentive (DLI) of up to 50% of eligible expenditure, capped at 15 Crore per application, and Deployment Linked Incentive of 6-4% of net sales turnover over 5 years, capped at 30 Crore per application.
Project Approvals and Locations:
* Six semiconductor manufacturing projects approved with a cumulative investment of around Rs. 1,55,000 crore.
* Applicants choose project locations based on factors like power supply, water availability, land, proximity to airport, state incentives, and ease of doing business.
Design Linked Incentive (DLI) Scheme:
* Provides fiscal support for design and deployment of semiconductor chips.
* Offers design infrastructure support to applicants.
* Three companies approved in Tamil Nadu under DLI scheme, with design infrastructure support also approved for six companies in Tamil Nadu.
Workforce Development and Skill Certification:
* Chips to Startup (C2S) program aims to develop 85,000 skilled manpower by providing engineering institutions with software and tools for chip design.
* Over 45,000 students from 100 institutions enrolled under C2S, with 43 institutes in Tamil Nadu supported with design tools and 10 receiving financial support.
* National Skill Development Mission has developed qualification standards for the semiconductor industry value chain.
* All India Council for Technical Education (AICTE) launched new curriculum for B. Tech, Diploma, and Minor Degree programs in Electronics Engineering and VLSI Design.
* Skilled Manpower Advanced Research and Training (SMART) Lab established at NIELIT Calicut in 2022, aiming to train 1 lakh engineers nationwide.
* Collaborations with industry and universities, including Lam Research, IBM, and Purdue University.
Impact Analysis:
Semiconductor Companies:
* Impact: Access to financial support and incentives for establishing or expanding semiconductor manufacturing and design operations in India.
* Action Required: Evaluate the Semicon India Programme and DLI scheme guidelines, prepare and submit applications with detailed project plans, and select suitable locations based on infrastructure and incentives.
Tamil Nadu State Government:
* Impact: Opportunity to attract semiconductor investments, boost local economy, and achieve the goals of Tamil Nadu's Semiconductor and Advanced Electronics Policy, 2024.
* Action Required: Align state policies with the Semicon India Programme, offer competitive incentives, ensure availability of infrastructure (power, water, land), and streamline regulatory processes to facilitate ease of doing business.
Engineering and Technical Institutions:
* Impact: Opportunity to participate in the C2S program, enhance curriculum, and train students in semiconductor design and manufacturing.
* Action Required: Apply for support under the C2S program, integrate new curriculum developed by AICTE, and collaborate with industry partners to provide practical training and internships.
Students and Engineers:
* Impact: Access to new educational programs, skill development initiatives, and job opportunities in the semiconductor sector.
* Action Required: Enroll in relevant B. Tech, Diploma, or Minor Degree programs, participate in training programs offered by SMART Lab and other institutions, and seek internships and job opportunities in semiconductor companies.
Key Entities Referenced
India Semiconductor Mission: A government initiative aimed at promoting semiconductor manufacturing and innovation in India.
Tamil Nadu: A state in southern India that is actively developing its semiconductor and advanced electronics industry.
Semiconductor and Advanced Electronics Policy, 2024: A policy by the state of Tamil Nadu to promote the semiconductor and advanced electronics sector.
Production Linked Incentive PLI schemes: Union Government schemes for electronics manufacturing, providing financial incentives to boost domestic production.
Design Linked Incentive DLI scheme: A Union Government scheme focused on incentivizing chip design by providing financial and infrastructure support.
National Skill Development Mission: A Union Government initiative focused on enhancing skills across various sectors, including the semiconductor industry.
Semicon India Programme: A comprehensive program by the Government of India with a significant financial outlay to support the development of the semiconductor ecosystem.
Chips to Startup C2S programme: A programme aimed at developing skilled manpower in the semiconductor sector by providing engineering institutions with necessary software and tools.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 503
TO BE ANSWERED ON: 23.07.2025
INDIA SEMICONDUCTOR MISSION AND DIGITAL MANUFACTURING
ECOSYSTEM DEVELOPMENT IN TAMIL NADU
503. THIRU DAYANIDHI MARAN:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to
state:
(a) the details of the semiconductor manufacturing projects approved or under consideration in
the country under the India Semiconductor Mission;
(b) the details of the technical and financial support framework extended to complement Tamil
Nadu's Semiconductor and Advanced Electronics Policy, 2024 targeting creation of 200,000
skilled professionals by 2030;
(c) the details of the alignment between Union Government Production Linked Incentive (PLI)
schemes for electronics manufacturing worth USD 10 billion and the Semiconductor High-
Tech Park Projects planned in Tamil Nadu with investments exceeding Rs. 25,600 crore;
(d) the details of the Design Linked Incentive (DLI) scheme allocations and technical support
provided by the Union Government Research Institutions for building a semiconductor design
ecosystem in Tamil Nadu; and
(e) the details of the workforce development and skill certification programmes initiated by the
Union Government to support Tamil Nadu's semiconductor manufacturing ambitions under the
National Skill Development Mission?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (e): Government introduced Semicon India Programme with an outlay of Rs 76,000
crore, which provides:
i. Fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon
Complementary Metal-Oxide-Semiconductor (CMOS) based Semiconductor Fabs in
India.
ii. Fiscal support of 50% of Project Cost on pari-passu basis for setting up of Display Fabs
in India.
iii. Fiscal support of 50% of the Capital Expenditure on pari-passu basis for setting up of
Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including Micro-
Electro-Mechanical Systems) Fab/ Discrete Semiconductor Fab and Semiconductor
Assembly, Testing, Marking and Packaging (ATMP) / Outsourced Semiconductor
Assembly and Test (OSAT) facilities in India.
iv. Product Design Linked Incentive (DLI) of up to 50% of the eligible expenditure subject
to a ceiling of ₹15 Crore per application and also “Deployment Linked Incentive” of 6%
to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application
for incentivising chip design.
Under Semicon India Programme, Government has approved 6 semiconductor manufacturing
projects with cumulative investment of around Rs. 1,55,000 croreIt is a pan India programme and the applicants are free to choose locations for their projects.
Many states have designed their semiconductor policies to align with the Semicon India
Programme. Applications are evaluated on technical and financial aspects. Applicants choose
the project location depending on various parameters such as uninterrupted power supply,
availability and quality of water, land availability, proximity of airport, incentives offered
under State government policies and other measures relating to ease of doing business provided
by the State Governments.
In addition to providing fiscal support for design and deployment of semiconductor chips under
the Design Linked Incentive (DLI) scheme, the scheme also provides design infrastructure
support to the applicants. Out of 22 design companies approved under the Design Linked
Incentive Scheme, so far, 3 companies are approved in the State of Tamil Nadu. Apart from
the above, design infrastructure support has also been approved to 6 companies in Tamil Nadu.
The details of beneficiaries in the State of Tamilnadu are Annexed.
Skilled manpower is critical for establishing semiconductor sector in India, Accordingly,
Government has taken following steps for augmenting skills in semiconductor sector:
• Chips to Startup (C2S) programme aims to develop 85 thousand skilled manpower in
semiconductor sector. Under this programme, engineering institutions are provided with
necessary software and tools to design semiconductor chips. More than 45 thousand
students from 100 institutions have been enrolled. Under Chips to start-up programme 43
institutes from Tamilnadu are being supported with design tools and 10 institutes are being
provided financial support. The details of beneficiaries in the State of Tamilnadu are
annexed.Under National Skill Development Mission, qualification standards have been
developed for the entire value chain of the semiconductor industry.
• All India Council for Technical Education (AICTE) has launched the new curriculum for:
o B. Tech in Electronics Engineering (VLSI Design)
o Diploma in Integrated Circuit (IC) manufacturing, and
o Minor Degree in Electronics Engineering (VLSI Design and Technology)
• A Skilled Manpower Advanced Research and Training (SMART) Lab has been setup in
NIELIT Calicut in 2022 with an aim to train 1 lakh engineers nation-wide. More than 42
thousand engineers have already been trained.
• Government is collaborating with industry and universities such as Lam Research, IBM
and Purdue University.
*****Annexure
Financial support to companies for chip design under DLI in the state of Tamilnadu:
1 Aheesa Digital Innovations Pvt. Ltd.
2 Mindgrove Technologies Pvt. Ltd.
3 InCore Semiconductors Pvt. Ltd.
Companies supported for design tools under DLI in the state of Tamilnadu:
1 ARIES BioMed Technologies Pvt Ltd.
2 Struent Semiconductors Pvt Ltd.
3 PRSsemicon Technologies Pvt Ltd.
4 Aheesa Digital Innovations Pvt. Ltd.
5 Mindgrove Technologies Pvt. Ltd.
6 InCore Semiconductors Pvt. Ltd.
List of Academic Institutes for financial support under C2S Programme in the state of
Tamilnadu:
1. Dr. Mahalingam College of Engineering and Technology, Coimbatore
2. S NS College of Technology, Coimbatore
3. N ational Institute of Technology Tiruchirappalli
4. I ndian Institute of Information Technology Tiruchirappalli
5. A nna University Regional Campus Coimbatore
6. M ohamed Sathak Engineering College, Ramanathapuram
7. K arunya Institute of Technology and Sciences, Coimbatore
8. S t. Xaviers Catholic College of Engineering, Kanya Kumari
9. C ollege of Engineering Guindy, Anna University, Chennai
10. I ndian Institute of Information Technology Design and Manufacturing,
Kancheepuram
List of Academic Institutes supported for design tools under C2S Programme in the state of
Tamilnadu:
1. D r. Mahalingam College of Engineering and Technology, Coimbatore
2. S NS College of Technology, Coimbatore
3. N ational Institute of Technology Tiruchirappalli
4. I ndian Institute of Information Technology Tiruchirappalli
5. A nna University Regional Campus Coimbatore
6. M ohamed Sathak Engineering College, Ramanathapuram
7. K arunya Institute of Technology and Sciences, Coimbatore
8. S t. Xaviers Catholic College of Engineering, Kanya Kumari
9. C ollege of Engineering Guindy, Anna University, Chennai
10. I ndian Institute of Information Technology Design and Manufacturing,
Kancheepuram
11. I IT Madras
12. P SG College of Technology, Coimbatore
13. V IT (Vellore Institute of Technology), Vellore
14. C rescent Institute of Science & Technology, Chennai15. V IT Chennai
16. M adras Institute of Technology
17. K ongu Engineering College, Perundurai, Tamil Nadu
18. S ASTRA Deemed University, Tamilnadu
19. S RM Institute of Science and Technology, Kattankulathur
20. R .M.K College of Engineering and Technology, Tiruvallur
21. K alasalingam Academy of Research & Education, Tamilnadu
22. M ohamed Sathak A J College of Engineering, Chennai
23. S SN College of Engineering, Kalavakkam
24. E aswari Engineering College, Chennai
25. V el Tech, Chennai
26. R MK Engineering College, Kavaraipettai
27. S RM TRP Engineering College, Trichy
28. S ri Eshwar College of Engineering, Coimbatore
29. S RM Institute of Science & Technology, Tiruchirappalli
30. N IELIT Chennai
31. S RM Institute of Science & Technology, Chennai
32. S ri Sairam Engineering College, Chennai
33. C hennai Institute of Technology, Chennai
34. T hiagarajar College of Engineering, Madurai
35. J .N.N Institute of Engineering, Chennai
36. A runachala College of Engineering For Women, TamilNadu
37. G overnment College of Technology, Coimbatore
38. S ri Shakthi Institute of Engineering and Technology, Coimbatore
39. P .S.R. Engineering College, Sivakasi
40. R ajalakshmi Engineering College, Thandalam, Chennai
41. R ajalakshmi Institute of Technology, Chennai
42. S ona College of Technology, Salem
43. H industhan College of Engineering and Technology, Coimbatore
*******