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India’s semiconductor industry gets much-needed booster shot | TechTree.com

India’s semiconductor industry gets much-needed booster shot

The government has approved a Rs.76,000 crore package for the development of sustainable semiconductors.

 

In the wake of the global semiconductor shortage, the government has a roadmap to make India the hub of semiconductor manufacturing. 

As India aims to become self-sufficient and self-reliant, the government announced industry-friendly measures for the development of semiconductors and display systems. These measures cover every part of the supply chain including, sub-assemblies, electronic components, and of course finished goods. 

These measures will also support the commercialisation and modernisation of the Semiconductor Laboratory (SCL) at Mohali.

The scheme for setting up of semiconductor and display fabrication plants in India shall subsidize  50% of the project cost to eligible applicants who have the technology and capability to execute such capital and resource intensive projects. 

The federal government will work closely with state governments to establish High-Tech Clusters with requisite infrastructure in terms of land, high-quality power, semiconductor grade water, and logistics and research ecosystems.  

“The biggest advantage that India has is the entire design ecosystem. We have around 24,000 design engineers working in India. So, that's a huge ecosystem. That means the talent is there, how to apply the talent, that application process is there. So, that is what gives us a very big advantage. Almost all the major economies are today giving close to 50% capital incentive on setting up a semiconductor fab or a display fab. We will be giving practically similar incentives. But what we are offering in advance is a very clear 20-year roadmap where the focus is on generating that talent, nurturing that talent and making sure that as the industry grows. There are a sufficient number of very well trained engineers available for taking that journey forward. So, that is what will give us a bigger advantage,” said Ashwini Vaishnaw, Minister for Railways, Communications, Electronics & Information Technology.

Semiconductor consumption in India is growing at 15% a year on the back of the country’s burgeoning electronics manufacturing industry.  “We are right now seeing 100% imports vis-à-vis the country’s semiconductors needs. In 2020, India spent $15 billion in electronics imports, with 37% of these being imported from China. The demand, however, is only set to increase with the introduction of 5G and growing consumption and production of electronics,” Neeraj Bansal, Partner - Risk Advisory and COO – India Global, KPMG in India.


TAGS: semiconductors

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