Govt to Ensure Robust Supply Chains for Semiconductor Units, States Rajeev Chandrasekhar

Chandrasekhar emphasized the necessity of developing robust supply chains within India’s borders to complement the burgeoning semiconductor infrastructure.

Speaking at the foundation stone-laying ceremony of the semiconductor facility in Dholera, Chandrasekhar underscored the symbiotic relationship between semiconductor fabs and their associated supply chains.

Chandrasekhar, on the question of incentives for companies involved in semiconductor manufacturing, clarified that current semiconductor policies do not explicitly outline incentive frameworks.

Chandrasekhar suggested that tailored policies might be necessary to address specific challenges particularly if there are hurdles hindering the transition of supply chains to India.

He emphasized the government’s readiness to seek additional resources, if required, to accommodate the influx of semiconductor projects and sustain momentum in the semiconductor ecosystem. The government recently marked a significant milestone by laying the foundation stones for three semiconductor units across strategic locations in India

With these developments, India now boasts four projects under the India Semiconductor Mission, with the government providing fiscal support of up to 50 per cent of the project cost to approved applicants. It is estimated that the government will allocate approximately ₹59,000 crore from the ₹76,000 crore semiconductor incentive scheme announced in 2021 to fund these initiatives.

He expressed optimism regarding future projects and highlighted the potential expansion of semiconductor manufacturing capacity, pending approvals for proposals such as SCL modernization and tower projects, which could yield 1.8 lakh wafers per month.

The government’s unwavering commitment to fostering a conducive environment for semiconductor manufacturing underscores its strategic vision to position India as a key player in the global semiconductor supply chain.