Semiconductor ‘setback’ a mischaracterisation: IT Minister

Indian Deputy Minister for Information Technology Rajeev Chandrasekhar
| Photo Credit: Reuters

Minister of State for Electronics and Information Technology Rajeev Chandrasekhar on Thursday hit out at a news report on hurdles being faced by semiconductor firms, which are reportedly facing delays due to a lack of a source for licensing the technology to manufacture chips.

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“You have to be ignorant to see India’s progress in last 12 months in Semicon and think its a “setback” – with many semicon design companies approved, semicon packaging proposals and mature node fab proposals received,” Mr. Chandrasekhar tweeted, citing the government’s decision to open — from Thursday onwards — applications for incentives for a wider range of semiconductor and display manufacturing facilities.

The report by news agency Reuters claimed that in the case of STMicroelectronics, a Swiss-headquartered semiconductor firm working with the Vedanta–Foxconn joint venture to build a $19.5 billion chip making facility, the government wanted STM to have “more skin in the game,” instead of just licensing the technology for a fee. The report based on conversations with industry executives.

“In coming weeks we expect to approve multiple semicon packaging and fab proposals,” Mr. Chandrasekhar said, referring to the industry term for a semiconductor fabrication plant.

The other facility, a $3 billion fab to be built by the consortium ISMC, is also being stalled, the report said, because of the Intel Corporation acquiring Tower Semiconductor, a key member of the grouping. Mr. Chandrasekhar did not specifically comment on these two projects in his reaction to the report.