Semiconductor industry succeeds in clusters: Meity Secretary S Krishnan

Globally, the success of the semiconductor industry has been centred around clusters. If you try to spread it out all over the place, it won’t be successful, S Krishnan said.
S Krishnan, secretary, Ministry of Electronics and Information Technology
S Krishnan, secretary, Ministry of Electronics and Information Technology
Updated on
3 min read

S Krishnan, secretary, Ministry of Electronics and Information Technology (Meity), in a conversation with this newspaper indicated that there would be a follow-on production linked incentive (PLI) scheme for larger investments.

An excerpt:

The Data Protection Act is in place, but now questions are being asked why more data is being sought in the name of protecting children?

The Data Protection Act is based on the data minimisation principle. If you are trying to protect personal data, then you cannot ask for more data. In order to determine that somebody is a child or not, one cannot ask tens of questions and pull out more personal data than needed. But then the point is that today there is no protection at all. You look at the Australian system, even the Australian system has no foolproof mechanism, it is based on declaration.

Last year was very good for India’s semiconductor industry. What is the target or expectation for this year?

As you know, the overall incentive allocated for the semiconductor mission is Rs 76,000 crore. This allocation comprises several components, including Rs 10,000 crore earmarked for the modernisation of the semiconductor lab (SCL) in Mohali. We have Rs 65,000 crore available for incentives, out of which Rs 62,000 crore has already been committed to five projects currently underway. To move forward, we are considering a few small projects which will utilise the remaining amount. However, the minister has already indicated that there would be a follow-on scheme for larger investments.

Many states have complained that the central government is favouring Gujarat when it comes to semiconductor projects.

Globally, the success of the semiconductor industry has been centered around clusters. If you try to spread it out all over the place, it won’t be successful. Initially, there may be one or two clusters, but later on it can grow. But you cannot have more than 3-4 clusters in a country. Even for states, setting up semiconductor clusters is an expensive proposition.

The smartphone PLI scheme has been a big success, but the same cannot be said for the laptop PLI. What is the reason?

Laptop PLI is still work in progress. We started working on it in November 2023. It can’t happen overnight. Smaller companies have come in, and many of them have established production facilities in FY25. Recently, Ashwini Vaishnaw inaugurated Syrma SGS Technology’s advanced laptop assembly line in Chennai. Kaynes Electronics Manufacturing Pvt Ltd and VVDN are also establishing their facilities. The bigger companies like Dell and HP will avail the scheme in the first week of FY26. Production in India will then shoot up. Out of the 27 companies selected under the PLI scheme, 15 or so have started operations. The remaining companies will start in FY26 and FY27.

There are reports of a rise in laptop imports after the implementation of the import management system. What’s your take on this?

There is a demand for laptops and computers in the country. If you’re able to produce and supply them within the country, that’s very good. If you’re not able to do so, it doesn’t mean I won’t let you import. Our import management system is not meant to disrupt the market. The intention is to ensure adequate supply of laptops in the country, and with the PLI scheme, more laptops will eventually be manufactured within the country.

Is there a plan to launch a new PLI scheme for semiconductor component manufacturing at an initial outlay of Rs 40,000 crore?

Some people have mentioned it, but I’ve never mentioned the amount. We are waiting for the scheme, which is in its final stages. The finance ministry has approved it, and it will be announced soon.

What’s the status of the India AI mission and GPU procurement?

We’ve received bids for GPUs, which are under evaluation. The companies involved will be Indian and foreign, but the GPUs will be made in India.

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