India Semiconductor Mission (ISM)

Why in news?

With the objective to develop a vibrant semiconductor ecosystem, the Union Cabinet approved the proposal of Kaynes Semicon Pvt Ltd to setup a semiconductor unit in Sanand, Gujarat.

About India Semiconductor Mission (ISM)

• The ISM was launched in 2021 with afinancial commitment of Rs 76,000 crore.
• It is designed to support the development of a robust semiconductor and display manufacturing ecosystem in India.
• The mission aims to provide financial support to companies investing in semiconductor manufacturing, display fabrication, and the design ecosystem.
• The mission is aspecialized and independent Business Division within the Digital India Corporation.
• It aims to build a vibrant semiconductor and display ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design.

Components of the India Semiconductor Mission

Scheme for Setting Up Semiconductor Fabs in India:

• The Scheme for setting up of Semiconductor Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to the approved applicants.
• Support under the scheme shall be provided for a period of six years.

Scheme for Setting Up Display Fabs in India:

• The Scheme for setting up of Display Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to the approved applicants.
• Support under the scheme shall be provided for a period of six years.
• The focus is on attracting investments to establish facilities for TFT LCD (Thin-Film Transistor Liquid Crystal Display) and AMOLED (Active Matrix Organic Light Emitting Diodes) based display fabrication, which are critical components in modern electronic devices.

Scheme for Setting Up Compound Semiconductors/Silicon Photonics/Sensors Fab and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) Facilities in India:

• The Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs / Discrete Semiconductors Fab and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 50% of capital expenditure to Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor Packaging (ATMP / OSAT) units.
• Support under the scheme shall be provided for a period of six years

Design Linked Incentive (DLI) Scheme:

• It supports the design and development of Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores, and semiconductor-linked design, fostering innovation in the semiconductor sector.
• Support under the scheme shall be provided for a period of six years.