Centre to expand semiconductor scheme, looks to get raw material suppliers: ISM chief

The government will expand the scheme for setting up semiconductor chip fabrication and packaging as well as other companies in the ecosystem under the second phase of the India Semiconductor Mission (ISM), said ISM CEO Akash Tripathi.

There are about 20 more proposals by semiconductor chip fabrication units, display fabrication companies, raw material suppliers and chip packaging companies, he told media persons on Monday.

“When we started ISM, the idea was that we need to support this industry for at least 10 years till we become mature. So, of course, we need to expand it. We need to (expand it) since out of this (ISM phase one) fund, a lot has been committed for the projects which we have sanctioned,” he said.


The government is also focusing on getting other companies such as raw material suppliers, gas companies and other vendors of the semiconductor ecosystem to India, apart from working to get the chip fabrication and packaging units, he said.

“We hope that in future also we will get more investment in this sector. Only fabs will not suffice (or) only OSATs (outsourced semiconductor assembly and test) will not suffice. So, we have this inkling that we need to support all the ecosystem components,” Tripathi said.

A proposal by Tower Semiconductor to set up a chip fabrication unit was under consideration by the ISM and the central government has sought more details from the company, he said, adding that a formal proposal by Tower Semiconductor-Adani Group joint venture was, however, yet to be presented before the ISM.

Last week, a Maharashtra cabinet panel approved a $10 billion investment proposal by a Tower Semiconductor-Adani Group joint venture to set up a semiconductor chip manufacturing unit at Taloja in Panvel.

The proposed unit, in the Navi Mumbai suburbs in Raigad district, will have a capacity of 40,000 wafer starts per month (WSPM) in the first phase, which will be expanded to 80,000 WPSM.