The centre notified the semiconductor policy that aims to promote the manufacturing of semiconductor chips in the country. As per the notification, the government will provide up to 50% of the cost for setting up two semiconductors and two display fabs units. The Application window will start from 1 January and will be open for 45 days.
Semiconductors are building blocks of electronic devices. Semiconductors are used to power a vast array of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure, and defence system.
1.3 The global semiconductor market was USD 440 Billion (₹33 lakh crore) in 2020 and expected to reach USD 1 Trillion (₹75 lakh crore) by 2030. Semiconductor industry can be broadly classified under three categories: Logic, Memory and DAO (Discrete, Analog and Others) with 42%, 26% and 32% of the industry revenue, respectively.
1.4 Indian semiconductor market stands at USD 15 Billion (₹1.13 lakh crore) in 2020 and is estimated to reach USD 63 Billion (₹4.73 lakh crore) by 2026. By 2030, India’s semiconductor market will be driven by wireless communications, consumer electronics and automotive electronics with 24%, 23% and 20% of the market share, respectively.
The semiconductor scheme was cleared by the Cabinet last week and is in line with the National Policy on Electronics 2019 (NPE 2019). One of the main strategies of NPE 2019 is to facilitate setting up of semiconductor wafer fabrication facilities and its eco-system for design and fabrication of chip components in the country.
This policy as anticipated may promote the manufacturing of semiconductor chips in the country.
