As the Centre's $10-billion production-linked incentive (PLI) scheme to promote semiconductor fabrication in India gains traction, S Krishnan, secretary of the Ministry of Electronics and Information Technology (MeitY), announced on Monday that the semiconductor industry may receive additional support. Krishnan spoke at the Semiconductor Ecosystem Conference in Pune, which was organised by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) and Software Technology Parks of India (STPI). He emphasised the critical need for India, given its size, to develop domestic semiconductor manufacturing capabilities for resilience rather than competitive advantage.
Krishnan emphasised that numerous nations, notably the United States, the European Union and Japan, are providing significant incentives to construct semiconductor facilities, much beyond India's budgetary allotment. Although the Indian government has allocated Rs 70,000 crore to various programmes, Krishnan stated that more has to be done. The sector requires 250-300 providers of gases, equipment, high-precision gear and even laundries capable of producing clean room workwear from various manufacturers. Krishnan stated that the next phase of semiconductor policy will solve these issues, providing suitable and appealing solutions to different areas of the industry. He proposed that these investments be lower in scale and spread out around the country, understanding that it would take 10-15 years to completely build the business.
Arvind Kumar, director general of STPI, also addressed at the conference, emphasising the expansion of innovation outside Tier 1 cities and the rise of deep-tech businesses. He emphasised the significance of working with the Mahratta Chamber to promote semiconductor production, fabless design and electronic manufacturing. STPI maintains Centres of Excellence (CoEs) across Maharashtra, including Motion in Pune, which focuses on electric and autonomous transportation and Fasal in Akola, which helps agritech entrepreneurs.
Pradip Chandren, assistant development commissioner of Maharashtra's Department of Industries, has declared that a new electronics manufacturing strategy will be implemented by 24 August. He highlighted intentions for more programmes before the assembly election code of conduct, such as reduced stamp tax and electricity subsidies. Chandren also mentioned the continuing attempts to create a distinct policy for the state's 45 lakh MSMEs.
A notable breakthrough at the meeting was the signing of a Memorandum of Understanding (MoU) between MCCIA and STPI. This cooperation, coordinated by Ajay Shrivastava, Director of STPI Maharashtra & Goa and Prashant Girbane, Director General of MCCIA, aims to foster the growth of the state's semiconductor ecosystem. This collaboration is anticipated to promote growth and innovation in the semiconductor sector, in line with the PLI scheme's overall aim of improving India's semiconductor manufacturing capabilities.
