Semiconductor Crisis: Government plans mega package to woo investment

All efforts will be made to formulate an attractive and investment-friendly scheme for the semiconductor companies looking forward to India.

India’s position in the field of chip design is very strong. But this much hyped fab has proved to be a failure in the making. Including an investment of five billion dollars to ten billion dollars

Semiconductor Crisis: Mega Multi Billion Dollar Capital Support and Production Linked Incentive Plan will start very soon in India to promote the manufacturing of semiconductors. According to the Times of India, this step is being taken at a time when large-scale production in industries is decreasing due to the lack of chips at the global level. Senior executives from some of the top semiconductor manufacturers such as Taiwan Semiconductor Manufacturing Company (TSMC), Intel, AMD, Fujitsu, United Microelectronics Corp. Because the government itself is emphasizing on increasing the semiconductor investment.

This ambitious scheme is being coordinated and monitored through the PMO itself. Not only this, many ministries have also been involved in this process so that semiconductor manufacturing companies can be wooed. These are companies that the US and Europe are also trying to woo. The Times of India has reported that the government is also ready for capital support in this matter, quoting a top source involved in this process. According to the source, a lot of work has been done on this.

Such will be the reduction

The government had recently held a high-level meeting on the matter in which Telecom and IT Minister Ashwini Vaishnav, Principal Scientific Advisor K Vijay Raghavan, top scientist and member of NITI Aayog VK Saraswat, Minister of State for IT Rajiv Chandrashekhar, representatives of Electronics, IT , Ministry of Telecommunications, Defense Research and Development Organization (DRDO), Department of Surface Transport and Space and representatives of academicians. The purpose of holding this meeting was to discuss such ministries with the departments which are affected by the shortage of semiconductors.

There may be benefits through programs such as financial assistance on capital expenditure, reduction in tariffs on certain components, and schemes for promotion of production of electronic components and semiconductors (SPECS) and production linked incentives (PLIs). All efforts will be made to formulate an attractive and investment-friendly scheme for the semiconductor companies looking forward to India. At present, India imports almost all types of semiconductors. So that can meet the demand of $ 24 billion. This demand is projected to reach $100 billion by 2025.

Earlier all attempts to get companies to invest in semiconductor production failed. The biggest reason for this was that apart from investment for this production, uninterrupted supply of clean water and electricity is necessary.

production will increase

India’s position in the field of chip design is very strong. But this much hyped fab has proved to be a failure in the making. In which investment of five billion dollars to ten billion dollars is involved. However, due to the havoc of Corona at the beginning of the year and the strategy of global level companies keeping an eye on China Plus 1 policy for purchase, there are possibilities of investment for India.

The government is confident that a large and rapidly growing electronics market, apart from needs in other industries such as defence, automobile, space and new-age technologies such as 5G and Internet of Things (IoT), will prompt companies to invest in India. . The government expects that the domestic demand is going to be very high. The government expects the production of electronics to reach $350-400 billion. By 2025, this production can increase this much. At present it is worth 75 billion dollars. This would be a great reason to get investment.

https://cfo.economictimes.indiatimes.com/news/govt-plans-mega-package-to-woo-investors-in-semiconductor-manufacturing/87478019