Semiconductor or chip may sound minor, but they are very important. Be it a smartphone or a computer or an automobile device or a medical device, it is used in almost every electronic item. Due to the shortage of semiconductors, there is an uproar all over the world and India is not untouched by it. Now to meet its shortage, the government is emphasizing on promoting the manufacture of semiconductors in the country itself. For this, the government is working on an incentive scheme.
Emphasis on semiconductor manufacturing
Union Minister for Electronics and Information Technology Ashwini Vaishnav gave information about semiconductor manufacturing in Rajya Sabha. BJP member KJ Alphons had questioned about the semiconductor. In response to this, Union Minister Ashwini Vaishnav said, ‘Semiconductor industry is very complex. This industry requires huge capital and yes, we definitely need to do a lot in this area. For this, we are in talks with many stakeholders and hope that the results will be good.
Explain that during this four major issues like mobile phones and IT hardware, electronic components, emerging technologies and semiconductors were discussed. During this, he also told that India’s growth rate in the electronics manufacturing sector 23 percent More than.
Incentives of over $10 billion
To promote semiconductor manufacturing, a spokesperson of the Ministry of Electronics and Information Technology has given information about the stimulus package on the condition of anonymity. The central government is working on an incentive package of more than 10 billion dollars to woo semiconductor manufacturers from all over the world in the country. The government had indicated the plan to bring a stimulus package in the month of October this year as well.
plan to attract investors
The central government will provide an incentive of Rs 760 billion over 6 years for domestic production of semiconductor fabs, display fabs, designs and packaging to reduce dependence on imports. As per the government’s estimates, the stimulus package plan will help India attract investments worth Rs 1.7 trillion over the next 6 years. It is expected that the cabinet will soon approve this proposal. With this stimulus package, financial assistance will be available for small scale industries and startups in the country. It will also attract semiconductor manufacturers from around the world.
This decision of the Modi government can play an important role in promoting the share of manufacturing in the economy and in the direction of speeding recovery from the economic loss caused to the country due to the pandemic.
$1.5 trillion global semiconductor market
The global market for semiconductors is estimated at $1.5 trillion. The global semiconductor industry is dominated by companies from the United States, Taiwan, South Korea, Japan and the Netherlands, while India aims to become a major player in this market. At present, the chip crisis is deep all over the world and this crisis is likely to continue till 2023. In such a situation, in addition to the incentive in the proposed scheme to promote semiconductor manufacturing in the country, 50% of the capital expenditure can be provided by the government to the companies selected for the construction of semiconductor fabs.
India Taiwan deal
India has already struck a deal with Taiwan to set up a US$7.5 billion chip plant to supply everything from 5G equipment to electric cars. The search for suitable location for the construction of this plant has also started. How important is Taiwan in the semiconductor market, you can understand that 80 percent of the world’s chips are made in South Korea and Taiwan.
Prime Minister Modi had met Qualcomm CEO Cristiano E Amon during his US visit and apprised him of the vast business prospects in India. Along with this, the Tata Group had announced an investment of up to $300 million to set up semiconductor assembly and test units in the country. Now the Tata group is also discussing to set up semiconductor plants in three states of the country (Tamil Nadu, Karnataka and Telangana). With the promotion of semiconductor manufacturing in the country, its shortage in the country will be overcome in the coming times. India will then be able to boost exports as well.
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