Semicon 2.0 shifts India’s focus from capacity to design, R&D: Industry experts
New Delhi, Aug 31 (IANS) The government’s Semicon 2.0 scheme with Rs 1,27,500 crore outlay marks a decisive shift from building capacity to creating design, R&D and supply‑chain capability across India’s semiconductor ecosystem, industry experts said on Monday.
The India Cellular and Electronics Association (ICEA) urged companies, investors and states to move quickly to convert the framework into projects and Indian‑owned intellectual property.
The industry chamber said the scheme designed to attract about Rs 4 lakh crore of investment and enable roughly Rs 2 lakh crore of semiconductor production over the scheme period, while building depth across design, manufacturing, supply chains and talent.
It highlighted fiscal incentives that include 40 per cent capex support for silicon fabs on a pari-passu basis and up to 75 per cent combined Centre‑and‑state support for R&D and talent initiatives.
The scheme rests on six pillars: design of chips; machines and materials; additional fabs; further strengthening of the ATMP/OSAT industry; research and development; and talent development.
The talent pillar targets training of one lakh design engineers in five years, alongside manufacturing skills in fabrication, packaging, equipment and materials — expands support across the full value chain, from fabs and advanced packaging to machines, materials and talent development.
“Building Indian-owned chip-design capability, including for AI compute, will allow companies to move higher up the value chain, retain a larger share of global electronics and generate growth that is recurring and durable not dependent on a single manufacturing cycle,” said Pankaj Mohindroo, Chairman, ICEA.
“Government’s focus on developing domestic design and R&D will pave the way for long-term and sustained growth of the industry. Design is where value, intellectual property and strategic control reside,” Mohindroo added.
The industry chamber said that all components of the ecosystem including design, AI compute and Indian-owned intellectual property, must advance together with manufacturing and the wider supply chain.
States that move first will lock in a first-mover advantage by attracting the ecosystem as a whole: fabs, packaging, suppliers, design houses and talent and not a standalone plant, it added.
“Aligned with India’s ambition to capture 10 per cent of the projected $1.8–2 trillion global semiconductor market by 2035, the programme provides a robust foundation for long-term economic growth by strengthening the domestic semiconductor value chain,” said Aisha Ali Hussaini, Partner and Semiconductor Tax Leader, EY India.
Paritosh Prajapati, CEO, GX Group, said the scheme’s focus on advanced packaging, chip design, displays and other critical semiconductor technologies will strengthen domestic capabilities across the value chain.
—IANS
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