In Short:
The Indian government has committed around Rs 62,000 crore in incentives for electronics manufacturing, with no funding issues for semiconductor projects, according to S Krishnan from the Ministry of Electronics. So far, five semiconductor projects worth Rs 1.52 lakh crore have been approved. India aims to focus on established semiconductor technologies to meet market demands, while also encouraging foreign collaborations for manufacturing.
In a significant development, the Indian government has allocated approximately Rs 62,000 crore in incentives for electronic manufacturing plants, with no current funding challenges for semiconductor projects. This assertion was made by S Krishnan, the Secretary of the Ministry of Electronics and IT (MeitY), during an interview with PTI.
Funding Allocation and Project Scope
Krishnan elaborated that out of the total Rs 76,000 crore previously approved for the semiconductor mission, the government retains the capacity to support smaller projects. He indicated that they will engage with respective authorities when fresh proposals are initiated. “Out of the Rs 76,000 crore intended for the semiconductor mission, we have committed about Rs 62,000 crore, including the recent scheme approved for Kaynes. Currently, we are expediting the settlement of claims as they arise, ensuring there are no funding issues,” Krishnan stated.
Current Projects and Future Prospects
The government has already greenlit five semiconductor initiatives that involve a cumulative investment of around Rs 1.52 lakh crore (approximately USD 18 billion). While highlighting the need for additional funding for the modernization of the Semiconductor Laboratory in Mohali, Krishnan mentioned the availability of funds for smaller projects, with future proposals requiring approval from the Ministry of Finance and the Cabinet.
Government Commitment and Strategic Focus
Krishnan assured that the government is highly committed to ensuring the success of the semiconductor mission. He expressed optimism about securing additional funding if necessary. “We are settling claims efficiently, and there are no current funding challenges,” he reiterated.
Proposals and Market Strategy
The Indian government has received about 20 proposals for incentives under the India Semiconductor Mission. Krishnan noted that India is focusing on legacy nodes—the established technology segment in the semiconductor industry producing large-size chips suitable for various applications, including automobiles, electric vehicles, power inverters, and consumer electronics.
Design Ecosystem and Manufacturing Collaboration
India has established a notable presence in the semiconductor design ecosystem, with approximately 20 percent of the global human resources required for semiconductor design based in the country. Krishnan emphasized that several major brands are leveraging Indian expertise for their design processes.
However, he acknowledged that India traditionally lacks a strong manufacturing footprint in this sector, necessitating collaboration with foreign leaders in semiconductor manufacturing. “We anticipate that once Indian companies collaborate with foreign entities to establish manufacturing facilities, the transfer of technology will occur progressively,” Krishnan explained.
Geopolitical Dynamics and Future Outlook
Furthermore, Krishnan remarked that due to the current geopolitical climate, like-minded countries are increasingly partnering with India to position it as a significant semiconductor manufacturing hub.
