Latest News | Govt Likely to Come Up with Policy to Imcnetivise Semiconductor Ancillary Firms: Chandrasekhar

Dholera, Mar 13 (PTI) The government may come up with a scheme to incentivise semiconductor ancillary firms to address disability in the segment and make it convenient for supply chain players to set up their units in India, Minister of State for Communications and IT Rajeev Chandrasekhar said on Wednesday.

While speaking about the groundbreaking ceremony of three chip plants with Rs 1.26 lakh crore investments, Chandrasekhar said the government is aware of the disability issue in the industry and may come up with a scheme when it starts looking for the second round of investments for semiconductor ecosystem.

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In response to a question on the status of investment of Micron's ancillary companies, the minister said a number of them have sought some sort of incentive from the government that current semiconductor policy does not 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.

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The government has put in place a Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) to encourage local production of electronic components, including semiconductors.

Chandrasekhar said that semiconductor is a very complex industry and chip makers in India will not like to tamper with their existing 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.

The minister said that India will develop to capacity to produce 1.8 lakh wafers per month after the chip plant proposal of Tower Semiconductors and SCL Mohali modernisation plan is put in place.

Tata Electronics wafer fabrication plant will have the capacity to produce 50,000 wafers per month.

The wafers are large disc-shaped plates that are cut into pieces for electronic chips.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)