ECMS Can Raise Semiconductor Value Addition to 20%: Chowdhry

The government's recently launched Electronics Component Manufacturing Scheme (ECMS) can increase domestic value-addition requirement to 15-20 per cent from the current 3-5 per cent for semiconductor components made in the country, said Ajai Chowdhry, cofounder of HCL and chairperson of the EPIC Foundation.

- AASHISH ARYAN

This value addition is likely to occur over the next three-five years as companies begin to obtain approvals and establish new plants in India, Chowdhry told Business Standard, adding that the next step should be owning intellectual property rights, especially in the design of semiconductor chips.

"There is another major area, which is still open. It is microelectronics, which covers areas like sensors, power products, and MEMS (micro-electro-mechanical systems). We have not done much about it. There are some research and development (R&D) institutes that have done very good work, but they are not creating products," Chowdhry said.