Industrial Printing to Benefit from Semicon India Programme
01 August 2022: In a written reply to a question in Lok Sabha, Minister of State for Electronics & Information Technology, Rajeev Chandrasekhar conveyed that as a result of several initiatives taken by the Government and efforts of the industry, the domestic production of electronic goods has increased substantially from Rs.2,43,263 crore (USD37 billion) in 2015-16 to Rs.5,54,461 crore (USD74.7 billion) in 2020-21 growing at a Compound Annual Growth Rate (CAGR) of 17.9%.
As semiconductors form a major part of all electronic products, as a result of growth in the electronics manufacturing sector, the semiconductor market in India has also witnessed proportionate growth over the last few years. As per the industry estimate, the semiconductor consumption in India was around INR 1.1 lakh crore in the year 2020 which is being met through imports due to the absence of commercial semiconductor fabs in India.
The industrial printing segment in India is therefore set for a big boost going forward, as the government has focused on its important objective of building the overall semiconductor ecosystem and ensuring that it catalyses India’s rapidly expanding electronics manufacturing and innovation ecosystem.
This vision of AtmaNirbharta in electronics and semiconductors was given further momentum by the Union Cabinet chaired by the Prime Minister approving the Semicon India programme with a total outlay of INR 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in our country. The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems. This will serve to pave the way for India’s growing presence in the global electronics value chains.
Four schemes are introduced under the aforesaid programme. In addition to these four schemes, the Government has also approved the modernisation of Semi-Conductor Laboratory, Mohali as a brownfield Fab. Applications have been invited under various schemes for the setting up of Semiconductor facilities. So far 23 applications have been received for the same, which are under evaluation.
Setting up of Semiconductor units requires huge investments and necessitates suitable infrastructure like the availability of uninterrupted Power and Clean Water. Further, Semiconductors manufacturing is a very complex and technology-intensive sector with huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology which require significant and sustained investments. However, the Government is committed to making all-round efforts to develop semiconductors and display manufacturing ecosystems in India.