“Disbursal has started for Micron, and for others, including Tata, will start now. So, we are collecting their details in terms of disbursement,” Ministry of Electronics & IT (MeitY) Secretary, S Krishnan told ETTelecom.
In 2021, Prime Minister Narendra Modi-led government introduced a mega PLI scheme at an outlay of Rs 76,000-crore under the modified program for semiconductor and display fab ecosystem.
In September 2022, the scheme was modified, offering 50 per cent uniform support across technology nodes, to woo big-ticket investors.
Earlier, the program offered a varied degree of fiscal support between 30-50 per cent across multiple categories for development of semiconductors and display manufacturing ecosystem in India.
The fiscal support is based on a pari-passu (equal footing) basis for setting up of a semiconductor, display fabs as well as other categories such as compound semiconductors.The government assistance, according to the top official, would be taken into account on equal proportion, based on a quarterly expenditure by beneficiary companies.Under the modified assembly, testing, marking, and packaging scheme, the two companies would receive 50 per cent of the cost incurred in setting up units on a quarterly basis.
In June 2023, the American chip maker Micron Technology at the invitation of the Indian government, committed to cumulatively invest a total of $2.75 billion including incentives for chip packaging for the automotive industry, smartphones, data centres, and Internet of Things (IoT) devices, in Gujarat’s Sanand’s facility.
“By December, 2025, Micron should be able to manufacture. They have already started manufacturing in their pilot plant. Likewise, Tata has started making chips in their pilot plant which is near Bengaluru,” Krishnan said.
The Idaho-based company’s key unit is under construction which according to the official would be finished by December 2024.
“The main plant of Tata will come up in Assam for assembly, testing and packaging (ATP), and that will take about three years to come up,” Krishnan added.
In March this year, the Cabinet approved three proposals to set up semiconductor units in India, including two plants by the Tata group companies in Gujarat and Assam.
Tata group subsidiary Tata Semiconductor Assembly and Test (TSAT) is building a semiconductor unit in Morigaon, Assam, with a production capacity of one million chips per day at a cost of Rs 27,000 crores.
Separately, Tata Electronics Private Limited (TEPL) is driving the semiconductor fab project in Dholera, Gujarat, in partnership with Taiwanese Powerchip Semiconductor Manufacturing Corporation (PSMC) with a spend of Rs. 91,000 crores.
India’s semiconductor initiative is set to bolster localised manufacturing, attract investments, and foster country’s integration into supply chains worldwide.