Manufacturing processes of semiconductors require sophisticated equipment demanding huge investments. The proposed incentives worth Rs 76,000 crore, over the next six years and the provision for 25 percent incentives on capital expenditure for establishing unit of Compound Semiconductor Wafer Fabrication (FAB), assembly, testing, and packaging facility in the country will encourage the manufacturing industry, apart from bringing investments and employment in the country and savings of foreign exchange.
Industry congratulates the Government of India for taking this positive step and thanks MeitY for its efforts and for considering IESA’s recommendations.
“This is a huge positive step for the Indian Electrical & Electronics industry. I believe this will accelerate our indigenization efforts and enable global competitiveness of our industry to ramp-up exports of finished products. It is one of the most significant moves towards realizing the vision of AtmaNirbhar Bharat; one which has come at an opportune time to tackle the global shortage of Semiconductors. “It should help streamline the disrupted global supply chain and help mitigate the cyber security risks. Semiconductors are widely used in manufacturing of many electrical equipment, viz: Smart Energy Meters, Control & Automation products, Testing & Measurement Instruments and switching products, to name a few. Electrical and allied industry will be hugely benefitted by smooth & competitive supply of Semiconductors within the country once FAB facilities are established. This will also enhance our export competitiveness.”
Vipul Ray, President, Indian Electrical & Electronics Manufacturer’s Association (IEEMA).
“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.
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.”
Rajeev Khushu, the Chairman of IESA
“This will enable India to become an electronics hub and encourage corporates to start manufacturing in India. It is a big step to bring India on the world map of the semiconductors industry as it will pave the path for the industry to broader the horizon of research, manufacturing and export” Sanjay Gupta, Managing Director, NXP India
“This strategic and pathbreaking move shall lay foundations to a much needed indigenous and integrated electronics design and manufacturing ecosystem which is the bedrock of any developed economy in the digital and Industry 4.0 era. This will now set-in-motion a longer-term process to transform India into an innovation-driven economy with focus on high-end capability, skills and value-creation, here in India.”
Baba Kalyani, Chairman and Managing Director, Bharat Forge Ltd.
“The country needed such an audacious goal and an integrated approach to kickstart its semiconductor industry. The current semiconductor shortage has made economies realise the strategic role of these chips in development. India, early on in the game, acknowledged the need to create a semiconductor ecosystem of its own. This is a positive move towards uplifting the industry and economy.”
Srinivas Satya, President, Applied Materials India
“Building blocks of the electronic ecosystem has already been launched…We will surely not lose our sight on the $300 billion output target by 2025-26.” Pankaj Mohindrro, Chairman, India Cellular and Electronic Association (ICEA)