21 March 2025, Hyderabad: The Ministry of Electronics and Information Technology (MeitY) has invited bids for selecting a project management consultancy firm to monitor the implementation and progress of the Semicon India Program. The agency will be responsible for overseeing the allocation of fiscal support, tracking the physical progress of projects, and ensuring compliance with key technological and financial parameters.
The Semicon India Program comprises three schemes—establishing semiconductor fabs, display fabs, and a scheme for compound semiconductors, silicon photonics, sensor fabs, and OSAT (Outsourced Semiconductor Assembly and Test) facilities. The selected agency will play a pivotal role in finalizing the terms of the fiscal support agreement, forming the basis for monitoring technological and financial arrangements, and overseeing the disbursement of payments.
According to MeitY’s call for bids, the consultancy firm will evaluate the technological arrangements of participating companies, ensure effective technology transfer, and maintain stringent quality control standards. Additionally, it will conduct financial assessments, including project estimates, overall costs, and validation of claims for fiscal support.
The firm’s responsibilities extend to monitoring the establishment of semiconductor fabrication facilities, which includes plant layout assessment, facility design review, vendor onboarding for construction, completion of buildings, and cleanroom readiness. It will also scrutinize critical production milestones, track the achievement of production targets, and assess off-take agreements.
The Indian government launched the India Semiconductor Mission in December 2021, unveiling a Rs 76,000-crore chip incentive scheme that offers a 50% subsidy on capital expenditure for plant setup. Since then, major investments have been approved under the scheme.
In March 2024, three significant projects received government approval—CG Power’s Rs 7,600-crore chip packaging facility in Gujarat’s Sanand, developed in partnership with Japan’s Renesas Electronics; Tata Group’s Rs 27,000-crore chip assembly plant in Morigaon, Assam; and Tata Electronics’ Rs 91,000-crore semiconductor plant in collaboration with Taiwan-based Powerchip in Dholera, Gujarat. Additionally, a Rs 275-crore packaging facility by US-based Micron Technology is currently under construction in Gujarat.
With the Indian semiconductor industry poised for rapid growth, the government aims to ensure that these projects progress efficiently under the supervision of a dedicated consultancy firm. The move is expected to strengthen India’s position in the global semiconductor supply chain and boost domestic manufacturing capabilities.
Source: Economic Times
