ISM panel studying semicon chip security: Meity additional secretary

Amitesh Kumar Sinha said the committee's recommendations are likely within weeks after operational guidelines for the Rs 1.27 lakh crore ISM 2.0 are released

A dedicated committee under the India Semiconductor Mission (ISM) is studying various aspects of semiconductor chip security and sovereignty and is likely to issue its recommendations within the next few weeks, ISM Chief Executive Officer Amitesh Kumar Sinha said on Friday. He was speaking on the sidelines of an event in New Delhi.

 

Sinha, an additional secretary in the Ministry of Electronics and Information Technology (MeitY), said the committee is currently engaging with all relevant stakeholders, including industry representatives, and gathering inputs from various ministries on their requirements for secure semiconductor chips for critical equipment and components.

 

The committee's recommendations are likely to be made public a few weeks after the administrative guidelines and operational details of the Rs 1.27 lakh crore ISM 2.0 are published within the next fortnight, Sinha said.

   

On July 15, the Union Cabinet approved the second phase of ISM, with a special focus on inviting design, materials, equipment and speciality chemical makers to set up operations in the country.

 

Under ISM 2.0, the government has proposed a grant-plus-equity structure for smaller start-ups seeking to design strategic and commercial chips in India, ensuring that the intellectual property rights (IPR) for these products remain within the country.

 

For medium-sized and large domestic companies that wish to enter the strategic and commercial chip design space, the government has proposed a co-investment or royalty-based funding and incentive payment structure.

 

The government has also carved out a special incentive proposal for Overseas Citizens of India (OCI) who wish to set up semiconductor chip design, manufacturing or packaging units in the country.

 

Such OCIs, Sinha said, will need to hold at least a 51 per cent stake in the parent company and register the intellectual property rights in India. The revenues of such companies set up under the scheme will also have to be realised in India, he said, adding that various measures were being taken to improve the ease of doing business and facilitate their return.

 

“We have a dedicated portal under ISM. Any investor who faces difficulty understanding government policy on semiconductors or any aspect of doing business in this sector can register a complaint on this portal, and we will get in touch with them. Our team will then try to solve the issues that they have raised,” he said.