With the advent of IoT<\/a> (Internet of things) and 5G technology in India, the demand for semiconductor chips is on the rise and is expected to reach about $100 billion by 2025 from $24 billion today. Further the current geopolitical scenario prioritises the security of critical information infrastructure above all and that’s why trusted sources of semiconductors<\/a> and displays hold strategic importance.
At present India’s semiconductor demand is entirely met through imports. Thus, there was a need to incentivise the value chain to make India economically self-reliant and technology leaders. The Government envisioned a comprehensive program for developing semiconductors and display manufacturing ecosystem in India with a budget of over Rs 76,000 crores.
The fiscal support commitment through the new schemes has reached Rs 2,30,000 crores, covering the entire electronics supply chain<\/a> - electronic components, sub-assemblies, and finished goods. In the first phase of rollout, incentives worth Rs 1,53,392 crores were announced for manufacturers of mobile phones, IT hardware<\/a> (covering tablets, laptops, server, all in one- PC), telecom & networking equipment, auto components, ACC battery, White goods (covering LED & Air-conditioner), Solar PV modules and specified electronic components. The latest is incentives for silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensor fabs, semiconductor packaging and semiconductor design.
Semiconductor and display fab requires a stealthy mix of product, product technology, process technology and high capital investment. Considering the same, unlike the past schemes which were based on production achievement, the programme designed by the Government to incentivize the sector is based on the project cost or capital expenditure. The broad framework of fiscal support committed under the scheme is as under:
- Semiconductor fab units will be offered fiscal support of up to 30% to 50% of project cost based on node size being manufactured.<\/li>
- Display fab units will be offered fiscal support of up to 50% of project cost with an upper ceiling of Rs 12,000 crores.<\/li>
- Compound semiconductor units, silicon photonics, sensors (including MEMS) fabs and ATMP\/OSAT facilities will be offered fiscal support of up to 30% of capital expenditure to approved units.<\/li>
- Chip product design companies (fabless companies) will be offered a design-linked incentive of up to 50% of eligible expenditure (maximum of Rs<\/li>
- 15 crore per application) and product deployment-linked incentive of 4-6% on net sales for 5 years (maximum of Rs 30 crores per application). The Government is looking to offer such support to at least 100 domestic companies and further expects at least 20 such companies to hit revenue of Rs 1,500 crore in 5 years.<\/li><\/ul>The application window for the schemes is open from 1 January 2022 and remains open for 45 days for semiconductor and display fabs and 3 years for other schemes. Special quality and cost-based selection criteria will be followed for approvals of semiconductor and display fabs.
In addition, as a non-fiscal incentive<\/a> the Government also intends to support companies by giving them purchase preference in procurement of electronic products under the Public Procurement (Preference to Make in India) Order 2017. This will support companies setting up manufacturing in India captive demand base for Indian manufactured chips, which has been one of the prime concerns of the chip manufacturing companies.
Global companies from Taiwan, the US, South Korea etc have expressed keen interest to invest, with a special focus on domestic companies, startups under the design segment. It is envisaged that the scheme would bring an investment of around $22 billion leading to the employment of over 1,35,000 in the next four years.
The Government is also planning to establish an “India Semiconductor Mission<\/a>” to drive long-term strategies for the sustainable development of the chip and display industry. Under this mission, the Central Government would also work with State Governments to provide pre-requisite infrastructure support in terms of land, semiconductor grade water, power, logistics and research ecosystem. The Government is also offering a clear twenty-year roadmap where the focus would be on generating highly skilled employment opportunities.
Another positive deviation from subsidizing\/ incubating IP creation in India through a Government sponsored agency has been to offer a large part of the incentive on successful implementation of the design by way of production linked incentive which will incentivize companies\/start-ups based on success rather than intent.
The second phase of promoting India as a manufacturing destination has been set in motion through the scheme where chip manufacturers shall benefit from the overwhelming response and demand created by the first phase of PLI. Further, with substantial fiscal incentives coupled with non-fiscal benefits, it is likely that India’s semiconductor dream is likely to be fulfilled and shall contribute significantly to achieving a $1 trillion digital economy and a $5 trillion GDP<\/a> by 2025 and have a multiplier effect on allied sectors such as electronics, telecom, automotive, railways, electrical products etc.
(The writer is Partner, EY India)<\/em>
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随着物联网(物联网)和5 g技术在印度,对半导体芯片的需求在增加,预计到2025年将达到约1000亿美元从现在的240亿美元。进一步当前地缘政治场景为重点的安全关键信息基础设施最重要的是,这就是为什么信任的来源半导体并显示持有战略重要性。
目前印度的半导体需求完全是通过进口来满足。因此,有必要激励价值链使印度经济自力更生和技术领导者。政府设想一个综合项目开发半导体和显示制造业生态系统在印度的预算/ Rs 76000卢比。
财政支持承诺通过Rs 2,新方案已达到30000卢比,覆盖整个电子产品供应链——电子元器件、半成品和成品。在第一阶段的推广,激励价值1 53392卢比对手机制造商宣布,它的硬件(包括平板电脑,笔记本电脑,服务器,所有在一个- PC),电信和网络设备,汽车零部件,ACC电池,白色家电(包括领导和空调),太阳能光伏模块和指定的电子元件。最新的激励硅半导体晶圆厂,显示晶圆厂、复合半导体、半导体硅光子学、传感器芯片、半导体封装和设计。
半导体和显示工厂需要一个隐形的混合产品,产品技术、工艺技术和高资本投资。考虑到相同,与过去的方案是基于生产成果,该项目由政府激励设计部门项目是基于成本和资本支出。广泛的框架下的财政支持承诺方案是为下:
- 半导体晶圆厂单位会提供财政支持项目成本的30%到50%的基于节点规模生产。
- 显示工厂单位将提供财政支持的项目多达50%的成本上限的Rs 12000卢比。
- 化合物半导体单位、硅光子学、传感器(包括MEMS)晶圆厂和ATMP / OSAT设施将提供财政支持多达30%的资本支出的单位批准。
- 芯片产品设计公司(专业公司)将design-linked激励高达50%的符合条件的支出(最大的Rs
- 15卢比的每个应用程序)和产品deployment-linked激励4 - 6%的净销售额为5年(最多30卢比/ Rs应用程序)。政府正在提供这种支持至少100国内企业,进一步预计至少20这些公司在5年内达到1500卢比的收入。
此外,作为一个非财政激励政府还打算支持公司通过给他们购买偏好在公共采购下采购电子产品在印度(偏好)订购2017。这将支持公司在印度设立制造人工需求基础对印度制造芯片,已芯片制造企业的主要问题之一。
跨国公司从台湾、美国、韩国等投资表达了浓厚的兴趣,特别注重国内企业,初创公司在设计领域。按照设想,该方案将带来约220亿美元的投资导致的就业超过35000在接下来的四年。
政府还计划建立一个“印度半导体的使命“开车的长期战略芯片和显示产业的可持续发展。在这一使命下,中央政府也将与州政府合作,提供前提基础设施支持的土地,半导体级水、电力、物流和研究生态系统。政府也提供一个清晰的20年路线图的重点会产生高度熟练的就业机会。
创造另一个正的偏移从补贴/孵化IP通过政府赞助机构一直在印度提供的很大一部分的激励成功实现设计通过生产与激励,激励公司/企业基于成功而不是意图。
促进印度作为一个制造业的第二阶段目标是通过该计划启动,芯片制造商将受益于绝大响应和由照明灯具的第一阶段的需求。进一步,大量的财政激励加上非财政好处,印度很可能是半导体的梦想可能会实现,大大有助于实现1万亿美元的数字经济和5万亿美元国内生产总值,2025年对盟军的乘数效应等行业电子、电信、汽车、铁路、电子产品等。
(作者是伙伴,是印度)
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