Semiconductor industry was facing huge loss from last few years and COVID-19 pandemic had already made it worse. From automotive industry to electronics and other technology sector, each sector has got hampered by the shortage of semiconductor. For improvising the situation Indian government has taken several steps. Recently, the Union Cabinet has approved a PLI scheme of Rs. 76000 crore. This step has been taken to boost semiconductor and display manufacturing in the country.
The government is planning to make India a global hub of electronic system design and manufacturing.
While electronics manufacturing in the country currently stands at around $75 billion, it is expected to grow to as much as $250 billion over the next five years. “Imagine, how much we will benefit if this surge is met by local manufacturing of chips. The industry tells me that with local sourcing, we can even touch $300 billion dollars in electronics manufacturing,” sai Communications and IT Minister Ashwini Vaishnaw.
Lauding the incentive, Rajeev Khushu, the Chairman of IESA, said, “IESA has been in conversation with the Government of India to take a holistic approach, with equal weightage being given to manufacturing, employment generation and providing the right atmosphere for fabless start-ups in the country. Clearing the INR 76,000 Cr PLI scheme is game-changing. I am sure this proactive move by the government will greatly strengthen India’s vision to emerge as a significant player in the semiconductor ecosystem.”
He further added, “As global and Indian players utilise the incentives to establish their manufacturing base in India, we will become a part of the global supply chain even before we set up the first ATMP in the country. Design incentives will catalyse the already thriving semiconductor design activities in the country and we will witness this ecosystem grow from both a design and product-definition perspective.”
K Krishna Moorthy, CEO & President, IESA said, “The semiconductor manufacturings policy and the related incentives announced today by the Government of India is the most significant and visionary announcement made for the semiconductor industry ever. It addresses almost all facets of the industry – be it design. Wafer manufacturing, ATMP or Compound Semi fab. We feel that it comes at an opportune time, with credits to MeitY for incorporaing industry inputs from IESA. The cascading effect this policy announcement will make will be huge and I am sure India will grow to a Semiconductor leader of the world, not only in design but also in manufacturing in the coming years.