Parliament Question: Semiconductor and Display Manufacturing Scheme

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO. 4305 TO BE ANSWERED ON: 18.03.2026 SEMICONDUCTOR AND DISPLAY MANUFACTURING SCHEME 4305. SHRI SASIKANTH SENTHIL: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) the total financial outlay approved under the Semiconductor and Display Manufacturing Scheme and the amount disbursed to date, project-wise; (b) the number of projects approved under the scheme for semiconductor fabrication (fabs), compound semiconductors and assembly, testing, marking and packaging (ATMP/OSAT); (c) whether a substantial proportion of approved projects are presently concentrated in assembly and packaging activities rather than advanced fabrication; (d) the rationale for prioritizing ATMP/OSAT facilities and whether this limits India’s technological self-reliance in core semiconductor manufacturing; (e) whether the Government has conducted an assessment of value addition at different stages of the semiconductor value chain and the expected employment and technology transfer outcomes; and (f) the steps proposed to ensure that India moves beyond assembly-led manufacturing towards full- stack semiconductor capability including wafer fabrication and design ecosystems? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA) (a) to (f): India’s semiconductor strategy: India’s semiconductor development strategy is inspired by Hon’ble Prime Minister’s vision of Atmanirbhar Bharat and Make in India, Make for the world. India’s semiconductor strategy builds on the success of the electronics manufacturing. In last 11 years, electronics manufacturing has increased to nearly 12 Lakh Cr and provides employment to more than 60 lakh people. Semicon India program: In 2022, Government approved Semicon India programme for the development of complete semiconductor ecosystem, ranging from design, fabrication, assembly, testing, packaging, and module manufacturing. Fiscal incentives were provided for setting up semiconductor units including fabs, packaging units, etc.Progress of Semicon India: In a short span of four years, the Government has approved 10 units with an investment commitment of about Rs 1.6 Lakh Cr. Approved projects include one Silicon CMOS based semiconductor fabs for logic chips, one Silicon Carbide based semiconductor fab for high power applications, two advance packaging for glass-based packaging and wafer level packaging and 6 other ATMP/OSAT facilities. The commercial production in one of the plant (Micron, Sanand) has commenced with Pilot production underway in 3 units. Developing design ecosystem: As per industry assessment, the maximum value addition in the semiconductor chips is from the design of chips. Semicon India programme focuses on design of semiconductor chips, SoCs and development of Intellectual Property (IP) through Design Linked Incentive (DLI) Scheme. Government has approved 24 projects for the design of semiconductor chips & SoCs, with a total project value of Rs 900 Cr. • These projects address critical sectors such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, and broadband and IoT SoCs. • Out of 24 projects, 14 companies have raised venture capital funding to scale up and productize their solutions. • Rs 650 crore raised in VC funding by Indian semiconductor startups. • 7 chips have been successfully fabricated out of 16 designs taped out across multiple foundries, including advanced nodes such as 12 nm at TSMC • 103 fabless chip design companies have been supported with access to advanced chip design infrastructure, cumulatively consuming 60 lakh hours of tool usage • 315 Universities are getting access to advanced EDA tools for the students. So far, the usage of these tools has exceeded 185 lakh hours • 146 designs taped out by 49 institutions across India out of which SCL has successfully fabricated and packaged 94 student-designed chips Building on the success of Semicon India Programme 1.0, Union Budget 2026-27 has announced India Semiconductor Mission 2.0 for equipment and materials, design full stack, Indian IP and fortify supply chains. *******