Semiconductor Policy  

A Big Step Ahead

The Indian semiconductor industry received a boost this year with the announcement of the Semiconductor Policy of the Government of India. India is emerging as one of the largest electronics markets in the world, with an estimated 11 percent global market share by 2015. To take advantage in this huge economic opportunity and fend off competition, India has to build capabilities that make it self-reliant in this sector.

Some of the main elements of the policy

A special incentive package to attract investments for setting up semiconductor fabrication and other micro and nanotechnology manufacturing industries.

The incentives will be for the manufacturer of all semiconductors, displays including Liquid Crystal Displays (LCDs), Organic Light Emitting Diodes (OLEDs), Plasma Display Panels (PDPs) and any other emerging displays, storage devices, solar cells, photo voltaics, other advanced micro and nanotechnology products, and assembly and test.

A key benefit is the grant of the SEZ status. This way the government has provided both pre-operative and post-operative benefits to the industry, which is important for the development of the eco-system, too.

The Government has provided two options for a project. Units would ideally choose the SEZ option, as the eco-system for chip manufacturing can be developed chiefly with a SEZ status to the developer of the eco-system too.


Note: (Incentive in % of capital expenditure); CVD is Countervailing Duty