Parliament Question: Measures to support indigenous production of semiconductor and chips

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY RAJYA SABHA UNSTARRED QUESTION NO. 1666 TO BE ANSWERED ON: 13.02.2026 MEASURES TO SUPPORT INDIGENOUS PRODUCTION OF SEMICONDUCTOR AND CHIPS 1666. SHRI R. GIRIRAJAN: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) whether Government has initiated new semiconductor policy to provide support to indigenous production of semiconductor and chips in the coming years, if so, the details thereof; (b) the funds allocated for setting up of semiconductor industries in the country including Tamil Nadu; (c) whether Government has any plans to seek support from USA, China and Israel for the supply of semiconductor and chips used in various electronic products; and (d) if so, the details thereof and the total value of imports made from these countries in the last five years? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA) (a) to (d): The semiconductor development strategy is inspired by Hon’ble Prime Minister’s vision of Atmanirbhar Bharat and Make in India, Make for the world. Government has adopted a planned and methodical approach to increase electronic manufacturing across the entire value chain including semiconductor. As part of this strategy, India aims to develop a complete ecosystem, ranging from design, fabrication, assembly, testing, packaging and module manufacturing. India’s Semiconductor strategy builds on the success of the electronics manufacturing. The growth of electronics manufacturing can be seen from the following statistics: # 2014-15 2024-25 Remarks Production of electronics ~1.9 Lakh Cr ~11.3 Lakh Cr Increased 6 times goods (Rs.) Export of electronics ~38 thousand Cr ~3.27 Lakh Cr Increased 8 times goods (Rs.) Given the foundational nature of semiconductor industry for the economy, the Government has launched the ‘Semicon India Programme’ with a total outlay of Rs. 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country. Under the Semicon India Programme, Government has approved 10 projects with envisaged investments of about Rs. 1.6 Lakh Crore which includes 2 fabs and 8 packaging units. These units inter-alia include CMOS (Silicon) fab, Silicon Carbide fab, advanced packaging, memory packaging, etc.Details of the projects are provided in the Annexure. These projects are in various stages of implementation. Pilot production has commenced in 4 units. Approved companies under Semicon India Programme have entered into technology partnership with global semiconductor companies. The approved companies are also collaborating with various global and local supply chain partners to ensure long term supply of the chemicals, gases and other raw materials. Government has adopted a comprehensive approach for building talent pipeline in semiconductors: 1. Chips to Start-up (C2S) Programme: To encourage India’s young engineers, Government is providing latest design tools (EDA) to 415 universities and start-ups. (i) Using these tools, chip designers from more than 46 universities have designed and fabricated 56 chips at Semiconductor Laboratory (SCL), Mohali. (ii) Training in chip design has also been provided to more than 67,000 students, and researchers so far. 2. Design Linked Incentive Scheme: To encourage startups/MSMEs to take up designing of chips and ensure their capacity building. 1. 24 projects approved for the design of semiconductor chips and SoCs, with a total project value of ₹900 crore. These projects address critical sectors such as CCTV, drone, energy metering, microprocessors, satellite communications, broadband and IoT SoCs. 2. 100 fabless chip design companies have been supported with access to advanced chip design infrastructure, cumulatively consuming 55 lakh hours of tool usage. 3. All India Council for Technical Education (AICTE) has launched the following courses: (i) B. Tech in Electronics Engineering (VLSI Design) (ii) Diploma in Integrated Circuit (IC) manufacturing, and (iii)Minor Degree in Electronics Engineering (VLSI Design and Technology) 4. ISM has also partnered with Lam Research for conducting a large-scale training programme in nanofabrication and process-engineering skills. These would further augment skilled workforce for ATMP and advanced packaging. The program aims to generate 60,000 trained manpower in next 10 years. The Government has implemented following schemes to promote the electronics manufacturing across the country, thereby increasing India’s share in global electronics markets: (i) PLI Scheme for IT Hardware and Large-Scale Electronics manufacturing (ii) Electronics Component Manufacturing Scheme (ECMS) (iii)Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (iv) Electronics Manufacturing Clusters Scheme (EMC) (v) Modified Special Incentive Package Scheme (M-SIPS) The Economic Survey 2025-26 notes that electronics exports reached $22.2 billion in the first half of FY26, which would soon propel the sector to be the 2nd highest export category by value.Union Budget for 2026-27 has also announced ISM 2.0 to further expand semiconductor manufacturing ecosystem. ******Annexure Details of approved semiconductor manufacturing projects: 1. Micron Technology Inc. is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs.22,516 crore. Micron’s facility in India will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets. The production capacity is around 14 million units per week. 2. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 91,526 crore. The fab facility will be set up in technology partnership with PSMC, Taiwan. The production capacity of the project would be around 50,000 wafer starts per month (WSPM). 3. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing facility in Assam with an investment of Rs.27,120 crores. The facility will use indigenous semiconductor packaging technologies with a production capacity of 48 million units per day. 4. CG Power and Industrial Solutions Limited is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 7,584 crore. The facility will be set up as a joint venture partnership with Renesas Electronics America Inc., USA, and STARS Microelectronic, Thailand. The Technology would be provided for this facility by Renesas Electronics Corporation, Japan and STARS Microelectronic, Thailand. The production capacity would be around 15.07 million units per day. 5. Kaynes Technology India Limited (KTIL) is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 3,307 crores for Wire bond Interconnect, Substrate Based Packages. The Technology would be provided by ISO Technology Sdn. Bhd. and AOI Electronics Co. Ltd. (AOI). The facility will have the capacity to produce more than 6.33 million chips per day. 6. HCL – Foxconn (VSIPL) is establishing semiconductor manufacturing facility in Uttar Pradesh with an investment of Rs 3,706 crores for display driver ICs (DDIC) using Gold (Au) Bump technology along with chip probing facilities and die processing services. The Technology would be provided by Hon Hai, Taiwan. The facility will be set up as a joint venture partnership between VSIPL and Foxconn, India. The production capacity would be around 20K wafers per month/36 million chips per month. 7. 3D Glass Solutions Inc. (3DGS) is establishing semiconductor manufacturing facility in Odisha with an investment of Rs. 1,943 crores. The plant will handle the assembly of packaged products such as Flip Chip Ball Grid Array (FCBGA) assembly, Radio Frequency System in Package (RF SiP), Antenna in Package System in Package (AiP SiP), glass interposers with passives and silicon bridges and 3D Heterogeneous Integration (3DHI) modules. The Proposed installed capacity for glass panel substrate production, assembly and 3DHI is around 5800 panels per month, 4.20 million units per month, and 1100 units per months respectively. 8. SiCSem Private Limited is establishing semiconductor manufacturing facility in Odisha with an investment of Rs. 2,066 crores. The facility will be set up in technology partnership with Clas- SiC Wafer Fab Ltd. for SiC fab and Continental Device India Pvt. Ltd. for packaging. The production capacity is 5,000 wafers/month, and the packaging capacity is 8 million units/month. 9. Continental Device India Private Limited (CDIL) is expanding its semiconductor manufacturing facility in Punjab, with an investment of Rs. 117 crores. The facility will manufacture high-power discrete semiconductor devices such as MOSFETs, IGBTs, SchottkyBypass Diodes, and transistors, both in Silicon and Silicon Carbide. The production capacity will be around 158.38 million units/annum. 10. Advanced System in Package Technologies Private Limited (ASIP) is establishing semiconductor manufacturing facility in Andhra Pradesh, with an investment of Rs. 480 crores. The facility will be set up in technology partnership with APACT Co. Ltd, South Korea. The production capacity of the facility would be around 96 million units/annum. ******