The Government of India is focused on the important goal of creating a common semiconductor ecosystem and expanded electronics manufacturing.
As a result of a series of initiatives taken by the government, the Indian production of electronic goods has increased significantly from Rs 2 432 63 crore ($37 billion) in 2015-2016 to Rs 5 54 461 crore ($74.7 billion) in 2020-2021 with a compound annual growth rate of 17.9%.
Since semiconductors make up the bulk of all electronic products, as a result of the growth of the electronics manufacturing sector, the semiconductor market in India has also shown proportional growth over the past few years.
The Cabinet, chaired by the Prime Minister, recently approved the Semicon India program with a total cost of INR 76 000 crore to develop the country’s semiconductor and display manufacturing ecosystem. The program aims to provide financial support to companies investing in the semiconductor, display manufacturing and design ecosystem. Along with the goal of creating 100 million manufacturing jobs by 2022, increasing the sector’s contribution to GDP to 25% by 2025, the program will ensure an annual growth rate of 12-14 percent.
Also, the Government Design Incentive (DLI) program offers financial design infrastructure support at various stages of semiconductor design development and deployment for integrated circuits (ICs), chipsets, systems on chips (SoCs), systems and IP cores, and also design related to semiconductors.
In addition to the above schemes, the government has also approved the upgrade of the Mohali Semiconductor Laboratory as an operating factory.
Semiconductors are an important component of modern technology, including automobiles, electronic devices, and even medical devices. The strategy will increase semiconductor production, attract huge investment, create a significant number of jobs, reduce the country’s dependence on imports, and generate income through exports.
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