Domestic production of electronic goods increased substantially from ₹2,43,263 crore in 2015-16 to ₹5,54,461 crore in 2020-21, growing at a compounded annual growth rate of 18 per cent, the Lok Sabha was informed on Wednesday.

"Many policies of the government including the flagship production-linked incentive (PLI) schemes, scheme for promotion of manufacturing of electronic components and semiconductors, modified electronics manufacturing cluster (EMC 2.0) scheme are major steps towards making India “AtmaNirbhar” in electronics manufacturing," Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, in a written reply to a question in the Lok Sabha said.

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As semiconductors form a major part of all electronic products, as a result of growth in electronics manufacturing sector, semiconductor market in India has also witnessed proportionate growth over the last few years, he said.

"As per the industry estimate, the semiconductor consumption in India was around ₹1.1-lakh crore in 2020 which is being met through imports due to absence of commercial semiconductor fabs in India.The government is very focused on its important objective of building the overall semiconductor ecosystem and ensure that, it in-turn catalyses India’s rapidly expanding electronics manufacturing and innovation ecosystem," he informed.

Semicon India programme

This vision of AtmaNirbharta in electronics and semiconductors was given further momentum by the Cabinet, approving the Semicon India programme with a total outlay of ₹.76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country.

The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem. This will serve to pave the way for India’s growing presence in the global electronics value chains.

Four schemes

The government has launched four schemes under the aforesaid programme, including scheme for setting up of semiconductor fabs in India aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country.

Scheme for setting up of compound semiconductors/ silicon photonics/ sensors fab and semiconductor assembly, testing, marking and packaging (ATMP)/ OSAT facilities in India. The scheme provides a fiscal support of 30 per cent of the capital expenditure to the eligible applicants for setting up of facilities for such products.

Thirdly, the design linked incentive (DLI) scheme that offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for integrated circuits, chipsets, system on chips, systems and IP cores and semiconductor linked design.

In addition to the above schemes, the government has also approved modernisation of semi-conductor laboratory, Mohali as a brownfield Fab.

Applications have been invited under various schemes for setting up of semiconductor facilities. So far 23 applications have been received which are under evaluation, Chandrasekhar added.