To promote the manufacturing and refining of semiconductor chips within the country the Centre has notified its new policy. The government hopes to see local production starting within the next 2-3 years, reported Bloomberg.
For setting up two semiconductors and two display fabs units the government will provide up to 50 per cent of the cost. On the other hand, additional support through the EMC2.0 scheme, demand aggregation, support for R&D, and skill development and training programmes will be provided.
To set up production in India last week the government had also announced a $10-bllion package to incentivise companies which will be spread over six years to boost chip production as well.
“The scheme aims to attract investments for setting up Compound Semiconductors/Silicon Photonics (SiPh)/Sensors (including MEMS) Fabs and Semiconductor ATMP/OSAT facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted electronics value chain in the areas of application of these fabrication and packaging technologies,”
While India has been overcome as a centre of semiconductor research and design, the country has been lagging in the local production of the vital component. Semiconductor chips are required for items like smartphones, laptops, PC components, automobiles, electronic appliances, solar panels and more. The recent global semiconductor shortage, which has deteriorated due to collapsing global supply chains, has highlighted the need for countries to indigenously expand manufacturing potentials for semiconductor chips.
“In next 2-3 years’ time frame, we see at least 10-12 semiconductors going into production, we see display fab going into production or maybe finalising completion. At least 50-60 designing companies would have started designing the products in the next 2-3 years,” Ashwini Vaishnaw, who holds the portfolio of the Ministry of Electronics & Information Technology, told Bloomberg.
“The response has been very good. All the big players are in talks with Indian partners and many want to come directly to set up their units here. Almost all big ones are talking to us,” Vaishnav added.