CHENNAI: The centre is keen to diversify the supply chain of semiconductors and the Ministry of Electronics and Information Technology (Meity) is working on a follow up scheme for promotion of manufacturing of electronic components and semiconductors (SPECS) that ended on March 31, said Meity secretary S Krishnan.
Speaking during the launch of fabless semiconductor startup IVP, the Meity secretary said, the supply chain for semi-conductor needs to be diversified. “That’s partly what the pandemic also taught us not to rely on one sort of supply chain. Some amount of diversification becomes important, and that’s what the Government of India is keen on,” he said.
Highlighting the success of India on the design side of the semiconductor industry, he said that 20-25% of the design workforce globally is based out of India. “But when it comes to manufacturing, it is entirely different services,” he added.
He said of the $10 billion (Rs 76,000 crore) allocated for the semiconductor mission, around Rs 70,000 crore has already been committed. Highlighting that Tata Electronics is building a mega semiconductor fabrication facility (fab) at Dholera, he said India needs more fabs and other stakeholders like supplies and equipment manufacturers. “Many of those are not large companies but small. There are nearly 300 vendors who will be required to be there in close proximity,” Krishnan said.
Speaking to reporters on the sidelines, P Rajamanickam, CEO of IVP Semi, said the start-up will be an Indian branded chip company with an aim to graduate into a global chip company. “By setting up the start-up we will be coming out with end products and will be competing with global companies. The focus of IVP Semi is to cater to domestic companies in the power sector, especially in the renewable energy sector, storage and transmission.”
Highlighting funding issues for Indian start-ups to come out with semiconductor products, he said the government is encouraging to have a supply chain, adding that they would be doing deep designing of the chip in India.
IVP Semi is working with the Tamil Nadu government to set up a production test facility on 20,000 sqft in Chennai. “We are working with the Tamil Nadu government, who are keen to develop a chip company like us. We are looking at setting up test centres in Chennai where they can participate as a grant or equity. We are in talks with Tamil Nadu Industrial Development Corporation and planning to hire 200 to 300 people,” he said.