I. Simmtech's Investing Boost to India's Semiconductor Domain

A. Introduction and Background

- The semiconductor industry in India takes a leap forward with the initiation of a manufacturing plant in Sanand, Gujarat by the South Korean firm, Simmtech.

- The venture is backed by Simmtech's hefty investment of Rs 1,250 crore, thereby setting gears in motion for an augmented semiconductor landscape in India.

B. Detailed Overview of the Investment and Plant Setup

- Inauguration of the plant was formalised through a Memorandum of Understanding (MoU) with the Gujarat government.

- Simmtech will plant its industrial roots on a 30-acre land located in proximity to Micron’s existing facility.

- Construction of the plant is anticipated to commence in the forthcoming 2-3 months with a projected completion horizon of 6-7 months.

II. Role of Simmtech in Enhancing Semiconductor Manufacturing

A. Semiconductor Substrate Manufacturing Capabilities

- Simmtech has exploited its specialization in manufacturing semiconductor substrates, the fundamental materials for numerous components in a semiconductor device.

- This venture marks an evolution in Gujarat's capabilities in semiconductor production.

B. Government Aid and Subsidies for Simmtech

- Simmtech's initiative has secured support from both central and state governments of India.

- The company is a beneficiary of subsidies under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which incentivizes domestic production of electronic components and semiconductors.

III. “Make in India” Initiative: Aiming for India's First Indigenous Semiconductor Chip

As revealed by Minister Vaishnav at the Vibrant Gujarat Global Summit, Gujarat aspires to manufacture the first Indian-made semiconductor chip by 2024, thus mirroring "Make in India" initiative for promoting self-reliance and innovation in the semiconductor sector.

IV. India's Semiconductor Mission (ISM): A Step Towards Sustainable Semiconductor Ecosystem

A. Genesis and Goals of the ISM

- Initiated in 2021 with an ample funding of Rs76,000 crore from the Ministry of Electronics and IT (MeitY), the ISM is an integral part of India's strategy to establish a sustainable semiconductor and display ecosystem.

- The mission's primary aim is to extend financial backing to companies investing in the semiconductor, display manufacturing, and design ecosystems.

B. Role of ISM in Nurturing the Semiconductor Sector

- ISM operates under the guidance of international experts in the Semiconductor and Display industry, ensuring the efficient and seamless implementation of relevant programs.

- The mission provides several schemes that offer fiscal support for the establishment of semiconductor and display fabrication facilities, as well as the incentivization of design development and deployment in the semiconductor sector. These incentives include the Scheme for Semiconductor Fabs, the Scheme for Display Fabs, the Scheme for Compound Semiconductors/Silicon Photonics/Sensors Fab and Semiconductor ATMP/OSAT facilities, and the Design Linked Incentive (DLI) Scheme.