Business

June 14, 2023 : The Cabinet is set to give its approval to a scheme worth Rs. 25,000 crore aimed at promoting semiconductor manufacturing, as reported by Business Standard. The initiative is part of the government's efforts to boost the domestic production of semiconductors and reduce dependence on imports.

The scheme, once approved, will provide financial incentives and support to companies involved in semiconductor manufacturing in India. It is expected to attract both domestic and foreign investments in this critical sector. The government aims to make India a global hub for semiconductor production, in line with the growing demand for electronic devices and emerging technologies. By promoting semiconductor manufacturing, the scheme aims to address the challenges faced by the electronics industry, such as supply chain disruptions and rising costs due to import dependency. It also aligns with the government's broader vision of achieving self-reliance and boosting the manufacturing sector under the "Make in India" initiative. The financial incentives provided under the scheme will help in creating a favorable environment for semiconductor manufacturing in the country. It is expected to lead to the establishment of new semiconductor fabrication units and encourage research and development activities in the field.

The global semiconductor industry has been facing supply shortages and increasing demand, particularly in the wake of the COVID-19 pandemic and the rapid adoption of technologies such as 5G, artificial intelligence, and the Internet of Things. The Indian government's scheme aims to capitalize on this opportunity by strengthening the domestic semiconductor ecosystem and attracting investments from leading semiconductor companies. Once implemented, the scheme is expected to boost job creation, skill development, and technology innovation in the semiconductor sector. It will also contribute to India's economic growth and enhance the country's capabilities in emerging technologies.

Overall, the approval of this scheme signals the government's commitment to promoting semiconductor manufacturing in India and reducing reliance on imports. It aims to position the country as a significant player in the global semiconductor industry and harness the economic and technological potential associated with this critical sector.