News & Events

India has preliminary win for semiconductor incentive scheme

India has revealed a list of applications for the US$10 billion chip and display incentive scheme. Most companies are not well-known in the semiconductor sector, but their applications still represent a preliminary win for India.

India's Ministry of Electronics & IT has released a press release saying three companies have submitted proposals to establish 28nm to 65nm semiconductor fabs with a total capacity of about 120,000 wafers per month. They are committing a combined investment of US$13.6 billion and seeking US$5.6 billion in subsidy.

According to Economic Times, the JV established by Vedanta and Foxconn is planning to invest US$7.4 billion and set up a 28nm fab, with 70-80% supplying the Indian market and the rest for export. A 28nm semiconductor fab is qualified for a subsidy of 50% of the project cost.

ISMC, another applicant, is a consortium of investors led by Abu-Dhabi-based Next Orbit Ventures with Israel's Tower Semiconductor providing semiconductor expertise. Tower Semiconductor's most advanced process is 65nm and primarily engages in analog IC. According to Business Standard, Tower Semiconductor and Next Orbit Ventures may invest US$3 billion to set up a fab in Dholera, Gujarat.

Singapore-based IGSS Ventures, the third applicant, is a technology holding company engaged in developing and manufacturing GaN on silicon. Its subsidiary CompoundTek provides foundry service for silicon photonics through a dedicated 8-inch wafer fab.

The Register pointed out that the capacity of 120,000 wafers a month, even if realized, would only add about 2% to the current global capacity. However, three applicants willing to invest in chip fabs still outnumber the goal of two fabs set by the Indian government. India is still wooing top semiconductor companies, such as TSMC, Samsung Electronics and Intel, according to Economic Times.

According to the Ministry of Electronics & IT, Vedanta and Elest Private have submitted their proposal to set up display fabs and committed to investing in an 8.6G TFT LCD display fab and a 6G AMOLED display fab. They have pledged a combined investment of US$6.7 billion and sought US$2.7 billion of financial support from the Indian government.

While Analytics India reported that Vedanta is looking at about US$10 billion investment on display, Swarajya reported that Elest lists Rajesh Mehta and Prashant Mehta as directors, who also cofounded Indian multinational gold retailer Rajesh Exports, one of the 10 applicants for the Advanced Chemistry Cell PLI scheme.

As for ATMP/OSAT applicants, SPEL Semiconductor is an India-based OSAT provider, and HCL engages in information technology services and consultation. Both Syrma Technology and Valenology Electronics are EMS providers.

Ruttonsha International Rectifier is the only one registering for compound semiconductors investment. Equity Bulls reported that the board of directors of Ruttonsha approved an acquisition of 100% equity of Vision Power, a US-based Silicon Power Corporation's subsidiary, and forayed into the SiC wafers manufacturing in December 2021.