Executive Summary:
The Ministry of Electronics and Information Technology addressed questions regarding semiconductor fabrication units under the Indian Semiconductor Mission (ISM). The government introduced the Semicon India Programme with a Rs 76,000 crore outlay to support semiconductor manufacturing, design, and assembly. Six semiconductor manufacturing projects have been approved with a cumulative investment of approximately Rs. 1,55,000 crore. The Design Linked Incentive (DLI) scheme supports startups and MSMEs, with multiple beneficiaries in Telangana.
Key Points / Main Content:
Semicon India Programme:
* Rs 76,000 crore outlay for semiconductor development.
* Provides 50% fiscal support for:
* Silicon CMOS-based Semiconductor Fabs.
* Display Fabs.
* Compound Semiconductors, Silicon Photonics, Sensors, MEMS Fab, Discrete Semiconductor Fab, and ATMP/OSAT facilities.
* Product Design Linked Incentive:
* Up to 50% of eligible expenditure, capped at Rs 15 Crore per application.
* Deployment Linked Incentive: 6-4% of net sales turnover over 5 years, capped at Rs 30 Crore per application.
* Six semiconductor manufacturing projects approved with approximately Rs. 1,55,000 crore investment.
* Applicants choose project locations based on factors like power supply, water availability, land, airport proximity, and state incentives.
Design Linked Incentive (DLI) Scheme:
* Fiscal support provided to approved startups and MSMEs.
* 22 design companies approved under the scheme, with 3 located in Telangana.
* Design infrastructure support approved for 11 companies in Telangana.
Chips to Startup (C2S) Programme (Telangana):
* 22 institutes supported with design tools.
* 6 institutes provided with financial support.
Beneficiaries in Telangana:
* DLI Financial Support: Green PMU Semi Pvt Ltd, WiSig Networks Pvt Ltd, MosChip Technologies Pvt Ltd.
* DLI Design Tool Support: Green PMU Semi Pvt. Ltd., Wisig Networks Pvt. Ltd., Dheyo AI Pvt. Ltd., AMPICQ Pvt. Ltd., BITSILICA Pvt Ltd, Manjeera Digital Systems Pvt. Ltd., Spintronics AI Semiconductors Pvt. Ltd., SmartKosh Technologies Pvt. Ltd., Vconnectech Systems Pvt. Ltd., Speedbus Semiconductors Pvt. Ltd., WnPSemicon LLP.
* C2S Financial Support: University of Hyderabad, International Institute of Information Technology Hyderabad, Osmania University College of Engineering, Chaitanya Bharathi Institute of Technology, Hyderabad, Indian Institute of Technology Hyderabad, National Institute of Technology Warangal.
* C2S Design Tool Support: University of Hyderabad, International Institute of Information Technology Hyderabad, Osmania University College of Engineering, Chaitanya Bharathi Institute of Technology, Hyderabad, Indian Institute of Technology Hyderabad, National Institute of Technology Warangal, JNTUH University College of Engineering Hyderabad, Birla Institute of Technology Science BITS, Hyderabad, SR University, Warangal, ACTS, CDAC, Hyderabad, VNRVJIET, Hyderabad, MJ College of Engineering and Technology MJCET, Hyderabad, Geethanjali College of Engineering and Technology, Telangana, B V Raju Institute of Technology, Narsapur, Telangana, GNITS, Hyderabad, MLR Institute of Technology, Dundigal, Vasavi College of Engineering, Hyderabad, ICFAI Foundation for Higher Education, Hyderabad, T K R College of Engineering Technology, Hyderabad, CVR College of Engineering, Telangana, CMR Engineering College, Hyderabad, Vardhaman College of Engineering, Hyderabad.
Impact Analysis:
Semiconductor Companies:
* Impact: Opportunity to receive fiscal support for establishing fabrication units, design incentives, and infrastructure support.
* Action Required: Evaluate eligibility criteria, prepare and submit proposals, and select optimal project locations.
Startups and MSMEs (Chip Design):
* Impact: Access to financial assistance and design infrastructure support through the DLI scheme.
* Action Required: Apply for DLI scheme benefits and utilize provided resources to enhance chip design capabilities.
Academic Institutes (Telangana):
* Impact: Support through C2S program for design tools and financial assistance.
* Action Required: Leverage the support to enhance curriculum and research capabilities in semiconductor design.
State Governments:
* Impact: Opportunity to attract semiconductor projects through aligned state policies and incentives.
* Action Required: Design and implement policies to complement the Semicon India Programme and provide ease of doing business.
Key Entities Referenced
Semicon India Programme: A Government of India initiative with an outlay of Rs 76,000 crore to support the development of the semiconductor and display manufacturing ecosystem in India.
Indian Semiconductor Mission (ISM): The organization responsible for driving India's strategies for developing the semiconductors and display ecosystem.
Design Linked Incentive (DLI): A scheme under the Semicon India Programme that provides financial incentives to startups and MSMEs engaged in chip design.
Chips to Startup (C2S) programme: A programme to support academic institutions with design tools and financial support to promote semiconductor design and innovation.
Telangana: A state in India where several companies and institutes are beneficiaries of the Design Linked Incentive (DLI) and Chips to Startup (C2S) programmes.
SHRI JITIN PRASADA: Minister of State for Electronics and Information Technology.
Complementary Metal Oxide Semiconductor (CMOS): A technology used in semiconductor fabrication.
Semiconductor Assembly, Testing, Marking and Packaging (ATMP): Facilities involved in the final stages of semiconductor manufacturing, including assembly, testing, marking, and packaging.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 575
TO BE ANSWERED ON: 23.07.2025
SEMICONDUCTOR FABRICATION UNITS
575. SHRI ARVIND DHARMAPURI:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the number of proposals received and approved under ISM (Indian Semiconductor Mission) for
semiconductor fabrication units till 31 March, 2025;
(b) the details of infrastructure readiness status for these fabrication units, region-wise;
(c) the expected timeline for commercial production from the approved units;
(d) whether the Government proposes to establish semiconductor fabrication units in Telangana and if
so, the details thereof; and
(e) whether any foreign players have entered joint ventures under the Design Linked Incentive (DLI) and
if so, the details thereof, State/UT-wise?
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 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 crore.
It 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.
Under the Design Linked Incentive (DLI) scheme, the fiscal support is provided to the approved startup
and MSMEs. Out of 22 design companies approved under the scheme so far, 3 companies are in the State
of Telangana. Apart from the above, design infrastructure support has also been approved to 11 companies
in Telangana. Moreover, under Chips to start-up (C2S) programme 22 institutes from Telangana are being
supported with design tools and 6 institutes are being provided financial support. The details of
beneficiaries in the state of Telangana are Annexed.
********Annexure
List of beneficiary companies for financial support under DLI in the State of Telangana:
1. Green PMU Semi Pvt Ltd
2. WiSig Networks Pvt Ltd
3. MosChip Technologies Pvt Ltd
List of beneficiary companies for design tool support under DLI in the State of Telangana:
1. Green PMU Semi Pvt. Ltd.
2. Wisig Networks Pvt. Ltd.
3. Dheyo AI Pvt. Ltd.
4. AMPICQ Pvt. Ltd.
5. BITSILICA Pvt Ltd
6. Manjeera Digital Systems Pvt. Ltd.
7. Spintronics AI Semiconductors Pvt. Ltd.
8. SmartKosh Technologies Pvt. Ltd.
9. Vconnectech Systems Pvt. Ltd.
10. Speedbus Semiconductors Pvt. Ltd.
11. WnPSemicon LLP
List of beneficiary academic institutes for financial support under C2S Programme in the
State of Telangana:
1. University of Hyderabad
2. International Institute of Information Technology Hyderabad
3. Osmania University College of Engineering
4. Chaitanya Bharathi Institute of Technology, Hyderabad
5. Indian Institute of Technology Hyderabad
6. National Institute of Technology Warangal
List of beneficiary academic institutes for design tool support under C2S Programme in the
State of Telangana:
1. University of Hyderabad
2. International Institute of Information Technology Hyderabad
3. Osmania University College of Engineering
4. Chaitanya Bharathi Institute of Technology, Hyderabad
5. Indian Institute of Technology Hyderabad
6. National Institute of Technology Warangal
7. JNTUH University College of Engineering Hyderabad
8. Birla Institute of Technology & Science (BITS), Hyderabad
9. SR University, Warangal
10. ACTS, CDAC, Hyderabad
11. VNRVJIET, Hyderabad
12. MJ College of Engineering and Technology (MJCET), Hyderabad
13. Geethanjali College of Engineering and Technology, Telangana
14. B V Raju Institute of Technology, Narsapur, Telangana
15. GNITS, Hyderabad
16. MLR Institute of Technology, Dundigal
17. Vasavi College of Engineering, Hyderabad
18. ICFAI Foundation for Higher Education, Hyderabad
19. T K R College of Engineering & Technology, Hyderabad20. CVR College of Engineering, Telangana
21. CMR Engineering College, Hyderabad
22. Vardhaman College of Engineering, Hyderabad
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