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Govt gets five proposals to build semiconductor, display factories with $20.5 billion investment

The government had approved a fund of Rs 76,000 crore for the Semicon India program in December 2021. The deadline for submitting proposals under this semiconductor program was February 15. Under the Semicon India program, the government has received 5 applications for semiconductor and display manufactures with a total investment of $20.5 billion (Rs 1.53,750 crore). Also read – All iPhone 14 models get a 120Hz display, 6GB RAM

The semiconductor industry has gone through one of the worst phases in the global market. This also made India realize its over-reliance on semiconductor imports. Despite a tight time frame to apply for semiconductor plants, the government claims to have had a good response. Also read – MSI Creator 17 Laptop With Mini LED 17-Inch Screen Ready To Launch At CES 2020

Semiconductor factories

Three companies that have submitted proposals to the government include:
-Vedanta in joint venture with Foxconn
-IGSS ventures pte, Singapore
-ISMC Also read – Samsung The Wall First Impressions: An Unparalleled Experience

These applications have been received to set up 28nm to 65nm Semiconductor Fabs with a capacity of approximately 1.20,000 wafers per month. The projected investment is $13.6 billion. Funding is sought from the central government for nearly $5.6 billion.

Semiconductors are used in products ranging from simple household appliances to the latest smartphones and cars. Aside from the consumer aspect, semiconductors are required in cloud servers, industrial automation, critical infrastructure and defense systems.

The Indian semiconductor market will be $15 billion by 2020. According to a government estimate, it will be an estimated $63 billion by 2026. Semiconductor manufacturing is a complex, capital and technology intensive process for manufacturing semiconductor wafers.

Show Fabs

Two companies have applied to set up Display Fabs in India including:

The expected investment of these companies is $6.7 billion. The central government’s fiscal aid is sought for nearly $2.7 billion.

Displays are a significant part of electronic products. India’s display panel market is estimated to be $7 billion and is expected to grow to $15 billion by 2025. Under the India Display Fabs Scheme, applications have been made to set up Gen 8.6 TFT LCD Display Fab as well as 6th Generation Display FAB for the manufacture of AMOLED display panels used in relatively expensive smartphones.

The applicant companies under the Semiconductor and Display Fab schemes have been recognized by India Semiconductor Mission (ISM), which was established as an independent institution to lead the Semicon India program. ISM will coordinate with the applicant companies who have also contacted states to provide access to world-class infrastructure. It will work closely with state governments to establish high-tech clusters with 300-500 acres of cultivated land, 100 KVA Power, 50 MLD Water, natural gas availability, and community facility centers for testing and certification.

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