Semiconductor PLI push: 5 companies eye Rs 1.5 lakh crore bet, experts evaluate

Founded in 2013, IGSS is a technology holding company based in Singapore providing semiconductor solutions. As per the website, IGSS provides plant/fab foundry transformation and service solutions. ISMC, led by Abu Dhabi based Next Orbit Ventures investment firm with Israel's tower semiconductor as a technology partner. ISMC is considering setting up a fab unit in Gujarat at a cost of USD 3 billion. The projected investments by all three companies is USD 13.6 billion. Applications have been received for setting up semiconductor fabs with a total capacity of 120,000 wafers per month.

As per the semicon scheme, the government will extend fiscal support of up to 50 percent of project cost to selected candidates. But none of the major established players have applied so far for semiconductor manufacturing in India. It is understood that the government may extend the scheme after the first round of applications are processed. The Ministry of Electronics and IT is still talking to the likes of Intel, TSMC, Global Foundries and Samsung.

Neeraj Mohan, Partner and National Leader at EY and Mohammad Athar, Partner of Economic Development and Infrastructure, at PwC India discussed this further.