A Big Step Ahead
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
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.