GS Paper - 3 (Information and Communication Technology)

Information Technology Minister Ashwini Vaishnaw launched the India Semiconductor Mission. The Minister said companies which are interested in tapping the Rs 76,000-crore incentives earmarked by the Centre for development of semiconductors and display manufacturing ecosystem in India can begin applying for the same from 1 January 2022.

What

  1. The India Semiconductor Mission (ISM) is a specialised and independent business division within the Digital India Corporation.
  2. It has been set up with the aim to build a vibrant semiconductor and display ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design.
  3. The mission is authorized to negotiate with the applicants under the semiconductor fab scheme and the display fab scheme.
  4. This mission has been given the autonomy to decide the appropriate technology mix, applications, node generation and capacity, among others and propose the structure and quantum of fiscal support for the selected applicants.
  5. A fab is short for fabrication plant where raw silicon wafers are processed and turned into integrated circuits.
  6. A Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in the country extends fiscal support of 30 percent of capital expenditure to approved units.
  7. It is expected that at least 15 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established under this scheme.
  8. A Design Linked Incentive (DLI) Scheme offers an incentive of up to 50 per cent of eligible expenditure and product deployment linked incentive of 4-6 per cent on net sales for five years.
  9. The Union Cabinet had approved these schemes on 15 December 2021. The Centre has committed a support of Rs 2.30 trillion for positioning India as a global hub for electronics manufacturing.