The government has received proposals from five companies for setting up electronic chip and display manufacturing plants at an investment of Rs 1.53 lakh crore.

Vedanta Foxconn JV, IGSS Ventures and ISMC plan to chip in $13.6 billion to set up electronic chip manufacturing plants. They have requested the Centre for $5.6 billion under the Rs 76,000-crore Semicon India Programme, the ministry of electronics and IT said on Saturday.

“Applications have come in for setting up 28 nanometer (nm) to 65 nm semiconductor fabs with a capacity of approximately 120,000 wafers per month,” the statement said.

The government will provide financial support of up to 40 per cent for chips above 28 nm to 45 nm and up to 30 per cent to set up manufacturing units for 45 nm to 65 nm wafers.

Vedanta and Elest have also proposed to set up display manufacturing units — used in mobile phones and laptops — at a projected investment of $6.7 billion. They have sought a support of $2.7 billion from the Centre for this.

“The Indian semiconductor market stands at $15 billion in 2020 and is estimated to reach $63 billion by 2026. Semiconductor manufacturing is a complex, capital and technology intensive process of fabricating semiconductor wafers.

“India Semiconductor Mission, which has been set up as a dedicated institution for Semicon India Programme, has received five applications for Semiconductor and Display Fabs at a total investment of $20.5 billion (Rs 153,750 crore),” the statement said.

The government closed the first round of application window for the programme on February 15 but will start another round based on interest from the industry.

The government expects investments of around Rs 1.7 lakh crore and 1.35 lakh jobs to be created in the next four years under the incentive scheme.