Govt commits 97% of Rs 65,000 Cr fund for semiconductor production

The government has committed around Rs 62,900 crore, or 97%, of the Rs 65,000 crore fund earmarked as incentives for semiconductor production in the country, a top official said on Friday.

While briefing on the Semicon India 2025 event, Electronics and IT Secretary S Krishnan said the funds left can accommodate only small projects.

He said that under the Rs 76,000 crore India Semiconductor Mission, Rs 65,000 crore was allocated for chip production, Rs 10,000 crore for the modernisation of the Semiconductor Laboratory in Mohali and Rs 1,000 crore for the design-linked incentive scheme.

"Out of this Rs 65,000 crore, I think we have committed close to Rs 62,900 crore or so already. We have limited funding, which we have available; we might be able to just accommodate two or three small projects," Krishnan said.

Talking about the Semicon India event, he said that the three-day event will be held from September 2-4 at Yashobhoomi in the national capital, which is expected to be attended by delegates from 33 countries and over 50 top-level executives of global semiconductor companies.

The event will be inaugurated by Prime Minister Narendra Modi.

Industry leaders from top companies, including Applied Materials, ASML, IBM, Infineon, KLA, Lam Research, MERCK, Micron, PSMC, Rapidus, Sandisk, Siemens, SK Hynix, TATA Electronics, and Tokyo Electron, will participate in the event.

The government has approved 10 projects in areas of strategic importance, including high-volume fabrication units (Fabs), 3D heterogeneous packaging, compound semiconductors (including Silicon Carbide SiC), and outsourced semiconductor assembly and test (OSATs).

The government has made a big push towards self-reliance in the semiconductor industry, especially with a special focus on the production of chips. A few companies have already made commitments towards production in India. It also aims to make India a global hub for electronics production.