Amount Outlined for Semicon Programme by Government, Pg8

Key Highlights:

• The government has officially notified the Semicon 2.0 programme with a total outlay of ₹1.27 lakh crore.
• The programme offers 40% fiscal support for silicon wafer fabrication units requiring a minimum investment of ₹20,000 crore.
• Incentives are also extended across the entire semiconductor value chain, including chip design.
• Semicon 2.0 aims to foster a comprehensive domestic semiconductor ecosystem in India.
• The India Semiconductor Mission (ISM) operates as the nodal agency responsible for the programme's implementation.

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Detailed Insights:

• Semicon 2.0 builds upon the initial Semicon India Programme (Semicon 1.0), which was approved in December 2021 with a financial outlay of ₹76,000 crore.
• The expanded programme is structured around six key pillars: design, machines and materials, semiconductor and display fabs, ATMP/OSAT industry, research and development, and talent development.
• It provides 35% capital expenditure support for compound semiconductor fabs and display fabs, and 30% for semiconductor equipment and materials manufacturing.
• The initiative seeks to enhance India's supply chain resilience, reduce import dependence, and establish the country as a global hub for electronics manufacturing and design.
• India aims to train an additional 100,000 semiconductor engineers under this programme, building on the 85,000 already developed.
• The programme includes provisions for seed funding and access to design infrastructure for startups and MSMEs involved in chip design.
• India's domestic semiconductor market is projected to grow significantly, reaching an estimated $110-120 billion by 2030.

Key Concepts Involved:

• Semiconductor Manufacturing: The complex process of fabricating integrated circuits (chips) that are essential components of all electronic devices.
• Silicon Wafer Fabs: Highly advanced manufacturing facilities where silicon wafers are processed through numerous steps to create semiconductor devices.
• Chip Design: The engineering process of creating the logical and physical layout of an integrated circuit before it is manufactured.
• Fiscal Support: Financial assistance provided by the government to industries or projects, typically through subsidies, grants, or tax incentives, to encourage growth and investment.