Big investment required for semiconductor space given the geopolitics: Rajeev Chandrasekhar

“Our ambitions specifically in the semiconductor space are very clear. Our ambition and our roadmap to silicon space involves obviously the big investment, which is natural given the geopolitics of the world in fabs but as importantly is that is the ecosystem around innovation, design and systems,” he said. “It is clear that we have a runway today of opportunities in the ESDM (Electronics System Design and Manufacturing) space, in the embedded design spaces, and of course, the semiconductor space,” he said while speaking at the inaugural ceremony of the 35th edition of VLSID 2022.

The government has so far received five applications for semiconductor and display fabs with total investment to the tune of $20.5 billion (Rs 153,750 crore) in the first round of applications till February 15 2022. Three companies have submitted proposals for semiconductor fabs and two companies for display fabs.

“We are essentially investing government capital in creating skills…from the research side to the design engineering and testing and packaging workforce side,” Chandrasekhar said.

Vedanta in a JV with Foxconn, Singapore headquartered IGSS Ventures Pte and ISMC have submitted proposals for semiconductor fabs. The applications have been received for setting up 28 nanometer to 65 nanometer semiconductor fabs with a capacity of approximately 120,000 wafers per month and the projected investment of $13.6 billion wherein fiscal support from the central government is being sought for nearly $5.6 billion.

Vedanta and Elest have submitted applications for display fabs with projected investment of $6.7 billion seeking fiscal support from the central government for nearly $2.7 billion. Under the scheme for setting up of display fabs in India, applications have been filed for setting up Gen 8.6 TFT LCD Display Fab as well as 6th Generation Display Fab for the manufacturing of state-of-art AMOLED display panels that are used in the advanced smartphones.

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Four companies, which are SPEL Semiconductor Ltd, HCL, Syrma Technology and Valenkani Electronics, have registered under this scheme for semiconductor packaging; and Ruttonsha International Rectifier Ltd has registered under this scheme for compound semiconductors.