Govt to Ensure Robust Supply Chains for Semiconductor Units, States Rajeev Chandrasekhar

Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, expressed the government’s commitment to addressing the intricate web of challenges involved in establishing semiconductor fabrication (fab) units. Chandrasekhar emphasized the imperative of developing robust supply chains within India’s borders to complement the burgeoning semiconductor infrastructure.

Speaking at the foundation stone-laying ceremony of the semiconductor facility in Dholera, Chandrasekhar underscored the symbiotic relationship between semiconductor fabs and their associated supply chains. He reiterated the government’s determination to facilitate the integration of supply chain elements within India, recognizing their indispensable role in the successful establishment and operation of semiconductor manufacturing facilities.

Chandrasekhar, on being questioned about potential incentives for companies involved in semiconductor manufacturing, clarified that current semiconductor policies do not explicitly outline incentive frameworks. However, he hinted at the possibility of exploring incentives in subsequent iterations of semiconductor initiatives. Chandrasekhar suggested that tailored policies might be necessary to address specific challenges and attract semiconductor investments, particularly if there are perceived hurdles hindering the transition of supply chains to India.

Highlighting India’s inherent capabilities and capacities, Chandrasekhar assured prospective semiconductor investors of comprehensive support from the government. He emphasized the government’s readiness to seek additional resources, if required, to accommodate the influx of semiconductor projects and sustain momentum in the semiconductor ecosystem.

The government recently marked a significant milestone by laying the foundation stones for three semiconductor units across strategic locations in India. These units include a semiconductor fabrication facility at the Dholera Special Investment Region (DSIR) in Gujarat, and Outsourced Semiconductor Assembly and Test (OSAT) facilities in Morigaon, Assam, and Sanand, Gujarat, collectively valued at ₹1.25-lakh crore.

With these developments, India now boasts four projects under the India Semiconductor Mission, with the government providing fiscal support of up to 50 per cent of the project cost to approved applicants. It is estimated that the government will allocate approximately ₹59,000 crore from the ₹76,000 crore semiconductor incentive scheme announced in 2021 to fund these initiatives.

Chandrasekhar hailed these developments as significant achievements for the nation, dispelling doubts about India’s semiconductor ambitions. He expressed optimism regarding future projects and highlighted the potential expansion of semiconductor manufacturing capacity, pending approvals for proposals such as SCL modernization and tower projects, which could yield 1.8 lakh wafers per month.

The government’s unwavering commitment to fostering a conducive environment for semiconductor manufacturing underscores its strategic vision to position India as a key player in the global semiconductor supply chain.

Credits: The Hindu Business Line

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