The worldwide shortage of chips has enticed India to take a step further and be self-reliant. The Union Cabinet on Wednesday approved a Rs 76,000-crore incentive package to boost semiconductor and display fab manufacturing in the country. The move comes at a time when there is worldwide shortages in the supply of the critical semiconductor componen that has hit industrial production across automobiles, electronics and other technology-led sectors.
Key points
1. Earlier, government had tried to get the investments in India for semiconductor manufacturing but it had not yielded much results. The government felt that the presence of a strong domestic market as well as suitable incentives and enablers will get the companies in this time.
2. Communications and IT minister Ashwini Vaishnaw announced the decision of 76,000 crore package after the Cabinet meeting, chaired by Prime Minister Narendra Modi, which would help India to stand in the global league of top electronics manufacturing nations. As of now China, Taiwan, South Korea and Malaysia rule the list.
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3. During the Covid-19 lockdown, Whole world saw a global surge in the demand for electronics and this has affected big companies like Apple as well.
4. IT minister Ashwini Vaishnaw said, "Today's historic decision will boost development of the complete semiconductor ecosystem, ranging from design, fabrication, packaging, and testing." He further said that through this government expects around 1.35 lakh jobs will be generated in the next four years.
5. Vaishnaw also informed that the government is in talks with top global companies like Taiwan Semiconductor Manufacturing Co, Intel, AMD, United Microelectronics Corp, and Fujitsu. Also in India, Tata Group and Anil Agarwal’s Vedanta have spoken about their interest in semiconductors, as well.
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