Semicon 2.0 can attract over Rs 5 lakh crore private investment: Industry
New Delhi, Aug 31 (IANS) The electronic system design and manufacturing (ESDM) industry on Monday welcomed the government’s notification of Rs 1.27 lakh crore Semicon 2.0 programme, saying the scheme has the potential to catalyse more than Rs 5 lakh crore of cumulative investment over the next five to seven years and significantly strengthen India’s semiconductor ecosystem.
According to an apex body, the India Electronics and Semiconductor Association (IESA), the programme builds upon the Semicon India Programme and marks a significant step towards strengthening India’s semiconductor design and manufacturing capabilities through an end-to-end approach covering six pillars across the value chain.
“The official notification of Semicon 2.0 is a very significant milestone. The speed with which the government has moved from Cabinet approval to official notification sends a strong message of policy continuity, execution and commitment,” IESA President Ashok Chandak said.
According to Chandak, policy continuity is critical for an industry where investments are made with a horizon of 10-15 years and the latest move would provide confidence to domestic and global investors planning long-term projects in India.
IESA noted that the first phase of the semiconductor programme had already helped create confidence in the ecosystem through 12 approved projects, support for more than 100 design startups and wider access to electronic design automation tools across educational institutions.
The association said Semicon 2.0’s significance lies in its comprehensive coverage of the semiconductor value chain, spanning chip design, fabrication plants, assembly, testing, packaging facilities, equipment and materials, research and development and workforce development.
It also welcomed the government’s proposal to identify strategically important semiconductor products through a high-level committee to be jointly chaired by the Principal Scientific Adviser and the National Security Adviser.
Chandak said that based on the current investment pipeline and the expanded scope of the scheme, IESA expects Semicon 2.0 to catalyse over Rs 5 lakh crore in cumulative industry investment across fabrication units, ATMP and OSAT facilities, equipment and materials manufacturing, research and development, chip design and supply-chain activities.
The industry body said the government’s fiscal support should be viewed as a catalyst for significantly larger private investment, with semiconductor projects creating demand across equipment, materials, specialty chemicals, packaging, logistics and skilled talent.
IESA further said Semicon 2.0, along with electronics manufacturing schemes such as the Electronics Components Manufacturing Scheme (ECMS), Mobile Phone Manufacturing Scheme (MPMS) and Electronics Manufacturing Clusters (EMC), could help create an integrated ecosystem that boosts domestic value addition and technology development. PTI
It also congratulated Union Minister Ashwini Vaishnaw and MeitY Secretary S. Krishnan, CEO, India Semiconductor Mission Amitesh Kumar Sinha and the entire MeitY–ISM team for their leadership, continued industry engagement and speed of execution.
The government earlier in the day notified Semicon 2.0 to support semiconductor design, fabrication, packaging, testing, equipment manufacturing, research and talent development.
–IANS
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