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Chip mission drive: Govt allocates 97% of semiconductor fund, leaves little scope for new projects

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Chip mission drive: Govt allocates 97% of semiconductor fund, leaves little scope for new projects

The government has already committed about Rs 62,900 crore — nearly 97 per cent of the Rs 65,000 crore earmarked for semiconductor manufacturing incentives — leaving room only for a handful of smaller projects, a top official said on Friday.Electronics and IT Secretary S Krishnan, while briefing on the upcoming Semicon India 2025 event, said the allocation was made under the Rs 76,000 crore India Semiconductor Mission. Of this, Rs 65,000 crore was reserved for chip production, Rs 10,000 crore for modernisation of the Semiconductor Laboratory in Mohali, and Rs 1,000 crore for the design-linked incentive scheme, PTI reported.“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.The three-day Semicon India 2025 event will be held at Yashobhoomi in New Delhi from September 2-4. It is expected to see participation from delegates representing 33 countries and over 50 senior executives from global semiconductor giants. Prime Minister Narendra Modi will inaugurate the event.Industry leaders from companies including Applied Materials, ASML, IBM, Infineon, KLA, Lam Research, Merck, Micron, PSMC, Rapidus, Sandisk, Siemens, SK Hynix, Tata Electronics and Tokyo Electron are scheduled to attend.So far, the government has cleared 10 projects in areas of strategic importance, such as high-volume fabrication units (fabs), 3D heterogeneous packaging, compound semiconductors like silicon carbide (SiC), and outsourced semiconductor assembly and test (OSATs).





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