Government Approves Semiconductor Projects to Boost Employment

Significant Investment in Semiconductor Manufacturing

New Delhi, July 23: The government has sanctioned six semiconductor manufacturing initiatives, amounting to a total investment of approximately Rs 1,55,000 crore. This initiative is projected to create over 27,000 direct job opportunities, as reported to Parliament on Wednesday.

The 'Semicon India Programme' was launched with a budget of Rs 76,000 crore aimed at fostering the semiconductor and display manufacturing ecosystem within the nation, as stated by Jitin Prasada, Minister of State for Commerce and Industry, in a written response to the Lok Sabha.

The semiconductor manufacturing sector is characterized by its specialized nature and intricate production processes. Consequently, the majority of employment opportunities generated in this field are for skilled workers. Additionally, as a foundational industry, these manufacturing units are anticipated to positively influence job creation across various sectors and their supply chains.

"The Design Linked Incentive (DLI) scheme offers financial support to approved startups and MSMEs. To date, 22 design firms have received approval under this scheme, with three located in Telangana," the minister disclosed.

Furthermore, design infrastructure assistance has been granted to 11 companies in Telangana. Under the Chips to Startup (C2S) initiative, 22 institutes in Telangana are receiving support for design tools, while six institutes are benefiting from financial aid, Prasada added.

In Tamil Nadu, three out of the 22 approved design companies under the DLI scheme have also been identified, with design infrastructure support extended to six firms in the state.

The C2S initiative aims to cultivate a skilled workforce of 85,000 individuals in the semiconductor industry. Engineering institutions are being equipped with essential software and tools for semiconductor chip design, with over 45,000 students enrolled from 100 institutions.

In 2022, a Skilled Manpower Advanced Research and Training (SMART) Lab was established at NIELIT Calicut, targeting the training of 1 lakh engineers across the country. So far, more than 42,000 engineers have completed their training.

The government is also partnering with industry leaders and academic institutions, including Lam Research, IBM, and Purdue University, as noted by the minister.