The government’s productivity-linked incentive (PLI) scheme for boosting semiconductor and display manufacturing is likely to bring results in the next 2-3 years.
Minister of Electronics and Information Technology Aswini Viashnaw recently said at least a dozen semiconductor manufacturers are likely to start setting up local factories in the next 2-3 years after the government recently announced the PLI scheme for boosting chip manufacturing.
The minister said India is planning an entire ecosystem related to the chip manufacturing industry and will start accepting applications under the incentive scheme from January 1, 2022. Viashnaw’s comments came during an interview with Bloomberg Television.
Ashwini Vaishnaw went on to say that the response to the scheme has been “very good”, adding that all the big players are in talks with Indian partners. “Many want to come directly to set up their units here. Almost all the big ones are talking to us,” he said during the interview.
It may be noted that the government recently approved a Rs 76,000 crore PLI scheme to boost local chip production over the next six years. The scheme to boost domestic chip manufacturing could significantly help India’s economy, including job creation, investments and reduction of import dependence.
“In next 2-3 years time frame, we see at least 10-12 semiconductors going into production, we see display fab going into production or may be finalizing completion,” Vaishnaw said. “At least 50-60 designing companies would have started designing the products in the next 2-3 years”.