Govt To come up with Policy To Incentivise Semiconductor Firms: IT Minister By CIOTechOutlook Team

Govt To come up with Policy To Incentivise Semiconductor Firms: IT Minister

CIOTechOutlook Team | Thursday, 14 March 2024, 02:44 IST

The government might concoct a plan to boost semiconductor firms to address disability in the sector and make it helpful for supply chain players to set up their units in India, Minister of State for Communications and IT Rajeev Chandrasekhar added.

While talking about the pivotal function of three chip plants with Rs 1.26 lakh crore funds, Chandrasekhar said the government knows about the disability problem in the sector and may frame a plan when it begins searching for the second round of ventures for semiconductor ecosystem.

Because of an inquiry on the situation with investment of Micron's subordinate organizations, the minister said various them have looked for some kind of incentive from the public authority that ongoing semiconductor strategy doesn't cover.

"It may require additional SPECS type of policy to support it. Especially, if there is justification to cover disability for moving to India. This is something that the government is seized of and will explore when the second round of investments are sought by the Government of India," Chandrasekhar said.

The public authority has set up a Plan for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) to support neighborhood creation of electronic parts, including semiconductors. Chandrasekhar said that semiconductor is an extremely intricate industry and chip creators in India won't care to mess with their current supply chain.

"Initially, it will be a native supply chain, and over time, most of them will move to India to set up their subsidiaries," Chandrasekhar said.