The central government is targeting a share of 10% in global electronics manufacturing and aiming at Rs 90,000 crore investments in semiconductors alone. Saurabh Gaur, IT Ministry joint secretary told CNBC-TV18, that the central government has been speaking to chip suppliers to address the chip shortage problem too. As for semiconductor production in India, Gaur said that “it is likely only after 2 years in the country.”
Gaur also informed that Mobile PLI has seen $5 billion being committed in five years. “IT hardware PLI scheme has seen HP, Dell, Acer commit investments,” he told CNBC-TV18.
Meanwhile, the government is already seeking applications from 100 domestic companies, start-ups and MSMEs under its Design Linked Incentive (DLI) Scheme to create a “vibrant ecosystem for Semiconductor Chip Design” in India. It recently launched a dedicated portal– www.chips-dli.gov.in- for inviting online applications from January 1, 2022 to December 31, 2024.
“India made a policy pitch to latch on to the digitisation opportunity eyeing Rs 90,000 crore investments in semiconductors alone. Supply shortage of chips has been due to rapid demand growth. Large players have been able to manage their supplies,” said Gaur.
“Government has been speaking to chip suppliers to address the problem. India has capability in chip design, not in manufacturing. Some companies are eyeing acquisitions overseas to address chip shortage. Semiconductor production in India is likely only after two years in the country,” he added
Talking about the DLI Scheme, which was announced by MeitY in December, financial incentives and design infrastructure support will be extended to domestic companies, startups and MSMEs across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design for over a period of 5 years.
The scheme, which was a part of Rs 76,000 crore ($10 billion) package that the government announced in December, aims to nurture at least 20 domestic companies involved in semiconductor design and facilitate them to achieve turnover of more than Rs 1500 Crore in the next five years.