India: The Union Cabinet has approved a budget of ₹76,000 crores (USD9.9 billion) for a production linked incentive (PLI) scheme under the government’s ambitious project named “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India.” Under this programme, India will be able to set up 20 semiconductor design, display fabrication, and components manufacturing units over the next six years, which will help the country to become a global electronics production hub. Additionally, the investment would help develop a complete ecosystem for designing, fabricating, packaging, and testing semiconductors.

The PLI scheme would offer fiscal support of up to 50% of the project cost to the companies that set up semiconductor and display fabrication units in the country. The Centre would work with the state governments to establish hi-tech clusters with necessary infrastructure requirements. The entire programme would create 35,000 high-quality jobs and 1 lakh indirect employment and contribute significantly towards achieving a USD5 trillion economy by 2025. The scheme will pave the path for the electronics industry to expand its manufacturing, research, and export horizons.

Commenting on the big investment push for semiconductor production, the government stated, “In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent ‘India Semiconductor Mission’ will be set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on semiconductors and display ecosystem.”

Addressing the launch of the PLI scheme for semiconductor production, TechSci Research Director Mr. Karan Chechi said, “The cabinet push comes at a time when the world is facing a severe semiconductor shortage, largely driven by supply chain crunches and sudden spike in demand for electronic products. The investment will play a pivotal role in propelling innovation and building domestic capacity to ensure the digital sovereignty of India, the world’s largest smartphone manufacturer. Besides, amplifying microchip production will help fulfill the growing need for semiconductors for electric vehicle manufacturing, which would contribute to the Electric Vehicle market.”

According to TechSci Research report on “India Semiconductor Market By Components (Microprocessors, Sensors, Analog IC, Memory Devices, Optoelectronics, Discrete Power Devices & Others), By Application (Networking & Communication, Healthcare, Automotive, Consumer Electronics, Industrial, Smart Grid, Gaming & Others), By Type (Intrinsic Semiconductor & Extrinsic Semiconductor), By Process (Wafer Production, Wafer Fabrication, Doping, Masking, Etching & Thermal Oxidation), By Region, Competition Forecast & Opportunities, FY2027”, India semiconductor market is anticipated to grow at a formidable rate during the forecast period. The growth can be attributed to the high internet penetration and proliferation of smart devices as well as fastest growing electric manufacturing market.

According to another TechSci Research report on “Semiconductor Market - Global Industry Size, Share, Trends, Opportunity and Forecast, 2016-2026 Segmented By Type (Integrated Circuits (Logic, Memory, Micro, Analog), Sensors, Optoelectronics, Discrete Semiconductors), By Process (Doping, Wafer Fabrication, Masking, Etching, Others), By Application (Networking & Communication, Healthcare, Automotive, Consumer electronics, Industrial, Smart Grid, Gaming and Others) and By Region”, the global semiconductor market is anticipated to grow at a steady rate owing to the rise in disposable income of consumers and increasing affordability of consumers to purchase quality products. Besides, advancements in technology and growing consumer awareness are contributing to the growth of the global semiconductor market.