In News:

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal of Kaynes Semicon Pvt Ltd to setup a semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore.

Key Highlights:

• The proposed unit, under the India Semiconductor Mission (ISM), will produce nearly 60 lakh chips per day.
• The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom and mobile phones, etc.
• The initiative aligns with India’s goal of developing indigenous semiconductor capabilities.
• As per the reports, India’s semiconductor market is projected to reach $64 billion by 2026, positioning the country as a major global semiconductor hub.
• The first indigenously-developed chip is set to arrive in the country by the end of this year.
• In March, PM Modi laid the foundation stone of three semiconductor projects worth Rs 1.25 lakh crore.
• Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat and one semiconductor unit in Morigaon, Assam.
• CG Power is setting up one semiconductor unit in Sanand. These units will produce lakhs of direct and indirect jobs.
• These four units will bring an investment of almost Rs 1.5 Lakh crore. The cumulative capacity of these units is about 7 crore chips per day, according to the Ministry of Electronics & IT.
• The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in 2021 with a total outlay of Rs 76,000 crore.

About India Semiconductor Mission (ISM)

• It is a specialized and independent Business Division within the Digital India Corporation that aims to build a vibrant semiconductor and display ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design.
• ISM has all the administrative and financial powers and is tasked with the responsibility of catalysing the India Semiconductor ecosystem in manufacturing, packaging, and design.
• ISM has an advisory board consisting of some of the leading global experts in the field of semiconductors.
• ISM has been working as a nodal agency for the schemes approved under the Semicon India Programme.

Semicon India Programme:

• Launched in 2021 with a total budget of Rs. 76,000 crore, the ISM is overseen by the Ministry of Electronics and IT (MeitY), Government of India. This initiative is part of a broad effort to develop a sustainable semiconductor and display ecosystem within the country.
• The programme is designed to offer financial support to companies involved in semiconductor and display manufacturing and design. It also aims to foster the creation of domestic Intellectual Property (IP), and to promote and incentivize the Transfer of Technologies (ToT).
• Under this programme, four key schemes have been introduced:

1. Scheme for establishing Semiconductor Fabs in India.
2. Scheme for establishing Display Fabs in India.
3. Scheme for setting up Compound Semiconductors/Silicon Photonics/Sensors Fabs and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/OSAT facilities in India.
4. Design Linked Incentive (DLI) Scheme.