In light of the Semiconductor Policy announcement, electronics industry players have welcomed the Rs 76,000 crore Product Linked Incentive Scheme (PLI) approved by the Union Cabinet for the manufacture of semiconductors and displays with the aim of making India an electronics hub.
This is the first time that the government has offered significant incentives for semiconductor product design, called Design Linked Incentives (DLIs), which incentivize product development and deployment to create Indian chip-level products. The year-long effort of the Meity team in consultation with Invest India, other government departments, national and global industry and academia has resulted in a policy covering all aspects of the industry and has the depth required understanding of the global ecosystem.
Dr. Ajai Chowdhry, Founder of HCL and Satya Gupta, Advisor to India Electronics & Semiconductor Association, said: “Electronics and semiconductors have become the most critical meta-technologies for the growth of the economy. , from all verticals of industry, everyday life and agents. for the social transformation of the masses. We are very pleased that Indian Governments have released a comprehensive and step-by-step policy regarding the design, manufacture and research of semiconductor products with INR 76,000 Cr. ($10 billion). The focus on Silicon Logic Fab, Display Fab, Compound Semiconductors Fab, packaging, semiconductor product design and research will help create a vibrant and sustainable ecosystem in India by leveraging semiconductor design capabilities. existing conductors. We look forward to effective and speedy implementation of the policies, with the help of professional and experienced leadership and serious involvement of India’s eminent national and global semiconductor leaders in the design and manufacturing of semiconductors. -drivers. I have been involved in most of the semiconductor ecosystem development efforts in India over the past 15 years and sincerely believe that the current policy is the most comprehensive effort with a thorough understanding of the requirements of the industry. industry and is the right way to create long-term atma-nirbharta in the field of semiconductors and electronics. “
Sanjay Gupta, Managing Director of NXP India, on the approval of the Semiconductor PLI scheme, added, “The approval of the Product Linked Incentive (PLI) Scheme of Rs 76,000-Cr for semiconductors under which Rs. 2.3 Lakh crore of incentives will be given is a welcome move.This will enable India to become an electronics hub and encourage companies to start manufacturing in India. a big step in bringing India onto the global semiconductor industry map as it will pave the way for the industry to broaden the horizon of research, manufacturing and export. In the long term, issues such as the sudden increase in demand for semiconductors will also be addressed.The move will also make Indian manufacturers globally competitive to attract investment in core skills and advanced technologies. .
Commenting on the initiative, K Krishna Moorthy, CEO and Chairman of IESA, India’s leading industry association for the ESDM (Electronic Systems Design and Manufacturing) sector, said: “Semiconductor manufacturing policy and incentives announced today by the Government of India is the most significant and visionary announcement ever made for the semiconductor industry.It touches on almost every facet of the industry – be it Design.Wafer Manufacturing, ATMP or Compound Semi fab. We feel this comes at an opportune time, with credits to MeitY for incorporating IESA’s industry input. The cascading effect of this policy announcement will be huge and I’m sure that India will become a world leader in semiconductors not only in design but also in manufacturing in the coming years.
IESA President Rajeev Khushu added, “IESA congratulates MeitY and GoI on this bold step to establish India as a hub for semiconductor design and manufacturing. We thank MeitY for their hard work and for being open and accepting of IESA’s industry recommendations. I am sure that not only global players will be able to use the incentives to establish their manufacturing base in India, but many of our local players will be able to take advantage of this opportunity. Semiconductors will become a trillion dollar opportunity over the next decade and the proactive steps taken by the Indian government will go a long way towards making India the superpower in semiconductor design and manufacturing. He added, “The design-related incentives will act as a catalyst for the already thriving semiconductor design business in the country. We will see the design ecosystem taken to the next level from a design and product definition perspective. India’s semiconductor mission is a game-changer like ISRO’s in space technology for the country. It will do the same in the field of ESDM. USD 30 BILLION is a good start and I’m sure we will take a leap forward in the semiconductor industry with the cabinet’s decision.
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