Cabinet approves Incentives worth INR 2,30,000 crore to boost Manufacturing Ecosystem of India
To make India a global hub for Electronic System Design and Manufacturing, the government of India has approved the comprehensive program for the development of a sustainable semiconductor and display ecosystem in the country.
A Cabinet committee chaired by Prime Minister Narendra Modi has initiated this program to usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.
India has decided to set up a “complete ecosystem” for Semiconductors in the country that includes design, fabrication, packaging, testing, etc.
In a conversation with Prasar Bharati, Union Electronics and IT Minister, Ashwin Vaishnav
Semiconductors and displays are the foundation of modern electronics that will drive the next phase of digital transformation under Industry 4.0.
While speaking to Ramesh Ramchandran, Senior Consulting Editor, Prasar Bharati, the Electronics Minister explained the features of semiconductors and why the government is setting up the India Semiconductor Mission (ISM) to drive this sector.
The India Semiconductor Mission will be led by global experts in the semiconductor and display industry, acting as the nodal agency for efficient and smooth implementation of the schemes.
How does India propose to achieve this target since it is a very complex and technology-intensive sector?
India has one major advantage which is a talented human resource of engineers and scientists.
Nearly 20 per cent of the engineers in the global semiconductor industry hail from India, the Electronics Minister says that “with a proper design ecosystem, clear government commitment and a talent pool available – the entire industry will flourish.”
The new chips to startups program of the central government will create a talent pool of 8,5000 high-skilled engineers, which will help India in becoming a semiconductor hub.
When asked about the Global Attraction for India’s Manufacturing Ecosystem, the Minister said that the country indeed has good traction from global players because of the talent pool, transparent selection/approach, focussed execution, excellent support system (water supply, etc.).
“But we will not stop there,” the Minister further tells Prasar Bharati, “we are also focussed to aid small and medium industry manufacturers.” The government’s scheme for ‘Setting of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India will extend fiscal support up to 30% of capital expenditure to approved units.
At least 15 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established with Government support under this scheme.
The Packaging industry can be done by smaller players, thus, developing great potential for employment. “The government will create some 100 design startups that might become global champions,” the Minister further said.
In total, the Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as the global hub for electronics manufacturing with semiconductors as the foundational building block.
An official release stated that “the government recognises the current geopolitical scenario where trusted sources of semiconductors and displays hold strategic importance. They are key to the security of critical information infrastructure.”
Recent programs approved by the government intend to propel innovation and build domestic capacities to ensure the digital sovereignty of India. The end goal is to create highly skilled employment opportunities to harness the demographic dividend of the country.
