Incentivise India-made chips' purchase: Industry body to govt

The Centre needs to incentivise buyers to buy products from India’s fledgling semiconductor companies, Indian Electronics and Semiconductor Association (IESA), one of the leading industry bodies in the sector, said.

- AVIK DAS

It added that without this, it would be difficult for them to scale up manufacturing.

India has 10 semiconductor projects in the works, which spans fabs, outsourced semiconductor assembly and test (OSAT) units and assembly, testing, marking and packaging (ATMP) facilities. That includes companies such as Micron, Tata Electronics, CG Power, Kaynes, and a joint venture (JV) between HCL and Foxconn.

“It takes about three-five years to design, make prototypes and manufacture. So, these design-linked incentive (DLI)-based startups, whatever chips they are developing, need to find the right set of customers and ramp up manufacturing,” Ashok Chandak, president of IESA, told Business Standard during an interaction at the Bengaluru Tech Summit last week.