Union Ministry of Electronics and Information Technology (MeitY) commits ₹70,000 crore for semiconductor and display ecosystem development

In a major boost to the semiconductor and display ecosystem in India, S. Krishnan, Secretary of the Union Ministry of Electronics and Information Technology (MeitY), recently announced that a substantial amount of around ₹70,000 crore has already been committed towards the ₹76,000-crore incentive program for its development. This initiative is considered to be one of the most generous in the world, with the Centre providing a 50% incentive and states like Tamil Nadu offering additional top-up incentives.

The goal of this program is to encourage the setting up of semiconductor and display manufacturing units in India by subsidizing 75% of the total cost. This move is aimed at reducing the country’s dependence on imports and creating a self-reliant ecosystem for these critical components. Mr. Krishnan emphasized the importance of deepening the value chain in the sector to ensure sustainable growth and competitiveness on a global scale.

India’s total electronics exports currently stand at $110 billion, with a significant portion of this activity centered around Sriperumbudur, near Chennai. While the country has made strides in semiconductor design, there is a need to focus on precision manufacturing to compete with established players like Taiwan, Korea, and Japan. Mr. Krishnan highlighted the importance of diversifying the semiconductor supply chain to mitigate risks and ensure continuity in production.

The government is actively working towards attracting more investments in semiconductor manufacturing, with companies like the TATA Group already setting up fab units. The support for the entire ecosystem, including equipment suppliers and manufacturers, is crucial for the success of this initiative. MeitY is also planning a follow-up initiative to further promote the manufacturing of electronic components and semiconductors in the country.

Overall, the commitment of significant funds towards the development of the semiconductor and display ecosystem in India is a positive step towards achieving self-sufficiency and enhancing the country’s position in the global electronics market. With a strong focus on innovation, manufacturing, and collaboration between the government and industry stakeholders, India is poised to become a major player in this critical sector.