December 17 2021: We bring you first reactions to the India government announcement of its incentives to the semiconductor industry , details of which we reported yesterday:
Dr Ajai Chowdhry, Founder HCL and Satya Gupta, Advisor-India Electronics & Semiconductor Association:
Electronics & Semiconductors have become the most critical meta-technologies for growth of the economy, all the industry verticals, day-2-day life and agents for social transformation of masses. We are very pleased that Governments of India has come out with a comprehensive and progressive policy addressing Semiconductor Product Design, Manufacturing and Research with INR 76,000 Cr. ($10 Billions) allocation. The focus on Silicon Logic Fab, Display Fab, Compound Semiconductors Fab, packaging, Semiconductor-products-design and Research will help in creating a vibrant and sustainable ecosystem in India leveraging the already existing semiconductor design capabilities. This is first time government is providing significant incentives for Semiconductor product Design called Design Linked Incentives (DLI) giving incentives for product development and product deployment to create Indian chips level products. The year-long effort by the Meity team in consultation with Invest India, other ministries, Domestic & Global industry and Academia has resulted in a policy covering all aspects of the industry and has the required depth of understanding of the global ecosystem. We are looking forward to an effective and timely implementation of the policies, with the help of a professional, experienced management and serious involvement of the eminent domestic and global Indian semiconductor leaders in design and manufacturing of semiconductors. I have involved with most of the efforts for developing semiconductor ecosystem in India for last 15 years and I sincerely feel that the current policy is most comprehensive effort with deep understanding of the requirements of the industry and is the right way forward to create long-term atma-nirbharta in the field of Semiconductor and Electronics.
NASSCOM: The Union Government’s plan for a production linked incentive (PLI) scheme for semiconductor and display board production is a progressive and welcome step and provides a much-needed boost to establish a holistic ecosystem in India. We appreciate the government’s effort to understand and recognise industry's demands and envisioning a time-bound incentive-led vision that will help the industry with every aspect – from design and fabrication to packing and testing. Over the next six years, this programme will form the foundation of a new era in electronics manufacturing and will form a vital pillar of the Government’s #AtmaNirbharBharat (Self-reliant) vision, in addition to driving growth and innovation, increasing prospects of job creation, and contributing to the global supply chain crisis.
Rajeev Khushu, Chairman of IESA: 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.
LiveMint: Why India failed to attract chipmakers (And what's different this time)
The most-cited reason is that India doesn’t have uninterrupted power and clean water supply for chip manufacturing. Further, chip fabs can cost $3-6 billion depending on the technology, and cash incentives alone aren’t enough to attract firms. For instance, the city of Pheonix in the US has agreed to provide $200 million to develop roads, sewers etc. to TSMC to set up a plant.
Times of India GoI chips in: Semiconductor industrial policy is welcome. It now
needs sharper focus: To lower the risks of investment, India should look at specially wooing back-end of manufacturing such as assembly, packaging and testing. Once it stabilises and an ecosystem develops, front-end of manufacturing will follow. Simultaneously, GoI needs to leverage the presence of Indian engineers in chip design, the part of the chain that contributes the largest value.