The government is expected to start approving proposals to set up chip and display factories in the country within the next 30 to 60 days, the state minister for electronics and computing said on Wednesday. Rajeev Chandrasekhar.
Speaking at the IESA Vision Summit, Chandrasekhar said there has been tremendous progress in the development of the semiconductor ecosystem in the country over the past 8-9 months.
The government has received proposals from five companies for the establishment of microchip and display manufacturing factories with an investment of Rs. 1.53 lakh crore.
Vedanta Foxconn JV, IGSS Ventures, ISMC are proposing to set up microchip manufacturing factories with an investment of $13.6 billion (almost Rs. 1.11,800) and have requested support of $5.6 billion (nearly Rs. 46,000 crore) from the Center under the Rs. 76,000 crore Semicon India Program.
“Over the next couple of months, I think within the next 30 to 60 days…The Indian government and India Semiconductor Mission will roll out the proposals that have been reviewed and have exceeded investment,” Chandrasekhar said in his virtual address. at the top.
He said there was a lot of interest in the industry and there were several proposals ranging from investing in wafer fabs to silicon compounds to packaging and testing.
“State governments have shown tremendous readiness. State governments like Gujarat and Karnataka have shown tremendous proactive response in looking at this brand new opportunity, an opportunity for growth and job creation. , investment and innovation,” said Chandrasekhar.
Vedanta Foxconn JV has announced plans to set up a microchip manufacturing unit in Gujarat. He said that major investments are needed in the semiconductor field and that the government sees this sector as a long-term game.
“This year alone, we will cross over $15 billion (almost Rs. 1.23,300 crore) in exports while at one point we had zero exports in 2014. Our target for electronics as an overall sector is $300 billion (nearly Rs. 24,66,800 crore) in manufacturing by 2025 and exports $120 billion (nearly Rs. 9.86,700 crore),” said said Chandrasekhar.
Citing a study, India Electronics and Semiconductor Association (IESA) Chairman Vivek Tyagi said that India will consume about $27 billion (nearly 2.22,000 rupees) worth of semiconductors in 2022.
He said government incentives have given a boost to the electronics sector, but most products are assembled in India.
“Once the products are designed here…there will be a different level of added value happening in the country,” Tyagi said.
He said that before the start of semiconductor manufacturing, there is a strong case of assembling and testing microchips in India.
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