AHMEDABAD: India will extend 50 per cent financial assistance to companies for setting up semiconductor manufacturing facilities, Prime Minister Narendra Modi said on Friday as he rolled out the red carpet to semiconductor industries.
Speaking after inaugurating the Semicon India 2023 conference in Gandhinagar, Modi said an entire ecosystem is being established for the semiconductor industry to grow in the country. “We were offering incentives as part of the Semicon India programme. It has been increased, and now technology firms will get 50 per cent financial assistance to set up semiconductor manufacturing facilities (in India),” he said.
India is becoming a grand conductor for investments in the semiconductor sector, he said, adding that 300 colleges in India have been identified for starting courses on semiconductor design. “It is estimated that in the next 5 years, more than one lakh design engineers are going to be produced in our country. India’s growing start-up ecosystem is also going to strengthen the semiconductor sector,” he said.
The PM further noted that because of the nation’s rapid expansion in the digital and electronics industries, India is emerging as a major conduit for investments in the semiconductor industry. Underscoring that electricity is required for this sector, Modi said the country’s installed solar power capacity has multiplied 20 times in the last decade.
India has set a target for 500 gigawatts of renewable energy capacity by the end of this decade and has taken big steps for the production of solar (photovoltaic) models, green hydrogen and electrolysers, he said. Modi said his government has done away with many old laws and compliances that were coming in the way of the ease of doing business and has provided special incentives for the semiconductor industry.
“Today the world is witnessing the fourth industrial revolution ‘Industry 4.0’. Whenever the world has seen an industrial revolution, its foundation has been the aspirations of people in one or more areas. The earlier Industrial Revolution and the American Dream were linked in this way. I see the same connection between the fourth industrial revolution and Indian aspirations today.”
The Prime Minister said that cheap data rates, quality digital infrastructure, and seamless power supply in the villages are burgeoning the consumption of digital products. Be it health, agriculture, or logistics, India is working towards a vision of smart technology usage, Modi said. The PM underlined that the chip-making industry is a market filled with opportunities and expressed confidence that those who begin early are bound to get a first-mover advantage over others.
“All of us have seen the global pandemic and the Russia-Ukraine war impact. India also understands that semiconductors are not only our need, but the globe needs a trusted supply chain partner,” the PM said. The Prime Minister said that India understands its global responsibilities and is working on a comprehensive roadmap with friendly countries.
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