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<ul><li>Akhter led a <keyword id="145965" type="General" weightage="20" keywordseo="semiconductors" source="Orion">semiconductors</keyword> trade mission to <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> and met top government officials in the Capital.</li><li>India's semiconductor component market is likley to reach $300 billion in cumulative revenues by 2026. </li><li>Last year, the government announced a ₹ 76,000 crore performance linked incentive (<keyword id="53367" type="General" weightage="50" keywordseo="pli" source="Orion">PLI</keyword>) scheme in the semiconductor sector . </li></ul> As the US and India join hands to address semiconductors supply chain challenges, the <keyword id="99719" type="General" weightage="50" keywordseo="joe-biden" source="Orion">Joe Biden</keyword> government's offer to provide assistance to India to build up its semiconductor manufacturing capacity appears to be just lip service, Chinese state-run publication Global Times has said. US deputy assistant secretary, South and Central Asia, Afreen Akhter, during her visit to India this week, said they will help India boost its semiconductor manufacturing capacity. Akhter led a semiconductors trade mission to India and met top government officials in the Capital. According to Global Times, the announcement is designed to "lure India into a geopolitical game to exclude <keyword id="1334" type="General" weightage="50" keywordseo="china" source="Orion">China</keyword> from the global chip industrial chain, rather than a commitment with real investment plans to support India's chip manufacturing." The report mentioned that the CHIPS and Science Act, that aims to provide $52 billion in subsidies for chip manufacturers to build fabrication plants in the US, is an attempt to build up an industrial chain focused on the interests of the US, "which is unlikely to bring benefits to India." India has introduced a series of preferential policies to attract chip companies to invest in production in the country. Last year, the government announced a ₹ 76,000 crore performance linked incentive (PLI) scheme in the semiconductor sector to boost local manufacturing. As India and the US double down on domestic semiconductor manufacturing, China witnessed its biggest-ever monthly decline in chip manufacturing in August owing to Covid restrictions and weakening demand. That was also the second consecutive month of decline for chip manufacturing. In July, the output nosedived 16.6 per cent to 27.2 billion units. Meanwhile, the Gujarat government has partnered Vedanta and Foxconn, aiming an investment of ₹ 1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing. India's semiconductor component market is likley to reach $300 billion in cumulative revenues by 2026, as 'Make in India' and production-linked incentive (PLI) schemes will boost local sourcing of semi-components in the coming years, according to the report by the India Electronics &amp; Semiconductor Association (IESA) and Counterpoint Research. The report further said that as India wants to become a chip powerhouse, it "should not take the bait laid by American diplomats in the hope that the US will provide it with important resources." "First, the assistance that Akhter said the US would provide to India may not be delivered on," it added. "Even as the US chose India as a partner in semiconductor cooperation in geopolitical calculations, this doesn't mean it will really help India to boost the semiconductor sector," the report mentioned. The real question India faces is if it wants to upgrade its chip manufacturing sector and move toward the upstream industrial chain, "it must build up a solid industry basis, instead of pinning its hope on US lip service". SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/india-unlikely-to-be-hit-as-hard-by-global-recession-as-other-countries-sbi-chairman/articleshow/94872601.cms">India unlikely to be hit as hard by global recession as other countries: SBI chairman</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/unseasonal-rains-have-damaged-crops-agri-minister/articleshow/94879881.cms">Unseasonal rains have damaged crops: Agri Minister</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-forex-reserve-declined-due-to-dollar-appreciation-fm/articleshow/94872555.cms">India's forex reserve declined due to dollar appreciation: FM</a>

US offer to help India in chip manufacturing just lip service: China

<ul><li><keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> is looking to woo semiconductor players such as <keyword id="28115" type="General" weightage="100" keywordseo="intel" source="Orion">Intel</keyword>, <keyword id="171929" type="General" weightage="80" keywordseo="tsmc" source="Orion">TSMC</keyword> and <keyword id="229605" type="General" weightage="80" keywordseo="globalfoundries" source="Orion">GlobalFoundries</keyword>.</li><li>The government is currently in talks with these companies to set up local operations.</li><li>The government had announced a production-linked incentive (PLI) scheme worth ₹76,000 crore in 2021.</li></ul>In a bid to push the semiconductor industry, which is in nascent stages, the Indian government is wooing global chipmakers such as Intel, and Taiwan Semiconductor Manufacturing Co. and GlobalFoundries. According to a <a href="https://www.bloomberg.com/news/articles/2022-04-26/india-woos-intel-and-tsmc-to-set-up-local-semiconductor-plants">report</a> by Bloomberg News, the government is currently in talks with these companies to set up local operations, thereby bringing high-tech manufacturing to the country. Semiconductor chipsets are used across a wide range of consumer electronics like smartphones, laptops, computers, cars, smart home appliances and many other things. <cmsannotation type="cmsannotation" annotationid="India’s ₹76,000 semiconductor crore push" comment="subhead" text="India’s ₹76,000 semiconductor crore push">India’s ₹76,000 semiconductor crore push</cmsannotation> In December 2021, the Indian government <a href="https://www.businessinsider.in/policy/economy/news/india-makes-a-10-billion-bet-to-woo-chip-makers-at-home/articleshow/88298295.cms">announced</a> a production-linked incentive (PLI) scheme worth ₹76,000 crore (around $10 billion) for establishing a semiconductor ecosystem in the country. As part of the scheme, the government has offered to cover up to 50% of the project cost. “Most of the pitches to these big companies, I’m making myself. We’re meeting the CEOs, talking to them, making presentations,” Rajeev Chandrasekhar, minister of state for electronics and information technology said in an interview to Bloomberg News. Chandrasekhar added that states in India are competing to attract semiconductor giants. “They are all open to sitting down and negotiating what other incentives, apart from land, they can offer investors. It is a keenly contested, keenly sought-after investment by states,” he added. While a venture between Vedanta Group and Foxconn Technology Group has shown interest in setting up semiconductor foundries in the country, other companies are cautious due to issues such as power outages and infrastructure in the country. India achieved success in its aim of bringing smartphone manufacturing into the country thanks to the incentives offered by the government and the imposition of taxes on imported devices. However, setting up a semiconductor industry requires substantial investments and the government intends to only use incentives to attract the big players. <div type="twitter" handle="narendramodi" handlename="Narendra Modi" image="http://pbs.twimg.com/profile_images/1479443900368519169/PgOyX1vt_normal.jpg" favoritecount="17399" retweetcount="3184" status="Glad to have met you @PGelsinger! We had excellent discussions on subjects relating to tech, research and innovatio… https://t.co/nHjaU33Sw1" createdat="1649264685000" id="1511751779519954945"></div> Earlier this month, Intel chief Pat Gelsinger met with prime minister Narendra Modi. According to a Business Today <a href="https://www.businesstoday.in/latest/corporate/story/intel-ceo-pat-gelsinger-meets-pm-modi-discusses-tech-328932-2022-04-07">report</a>, the two discussed India’s PLI scheme for the semiconductor industry. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/after-google-now-oppo-is-reportedly-working-on-its-own-chipset-to-reduce-dependence-on-qualcomm-and-mediatek/articleshow/90700478.cms">After Google, now Oppo is reportedly working on its own chipset to reduce dependence on Qualcomm and MediaTek</a> <a href="https://www.businessinsider.in/thelife/news/rivian-ceo-warns-the-looming-ev-battery-shortage-will-make-the-chip-shortage-feel-like-a-small-appetizer-for-whats-to-come/articleshow/90919065.cms">Rivian CEO warns the looming EV battery shortage will make the chip shortage feel like 'a small appetizer' for what's to come</a> <a href="https://www.businessinsider.in/tech/news/semiconductor-ecosystem-us-will-help-india-to-boost-countrys-semiconductor-target/articleshow/90819637.cms">US will help India to boost country’s semiconductor ecosystem</a>

India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country

<ul><li>The government has passed a ₹76,000 crore ($10 billion) incentive scheme for semiconductors, which will strengthen India’s manufacturing base in making semiconductor chips.</li><li>Also, about 85,000 semiconductor engineers would be supported over the course of the next 20 years.</li><li>The development comes at a time when many companies across the world have been suffering from a chip shortage for so long now.</li></ul>Finally, some of the semiconductor shortage will hopefully ease after the Indian government announced an ambitious production-linked incentive (PLI) scheme worth ₹76,000 crore (around $10 billion at current rates) for establishing a semiconductor ecosystem in the country. The development comes at a time when auto majors and several other companies using chips in their products across the world have been suffering from a chip shortage for so long now. Semiconductor chipsets are used across a wide range of consumer electronics, including smartphones, laptops, computers, cars, smart home appliances like lights, fans and many other things. There are many semiconductor manufacturers across the world, but very few are listed in the Indian market. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian semiconductor companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock price change on December 15 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Moschip Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+9.96% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ASM Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+4.99% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SPEL Semiconductor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+4.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ruttonsha International Rectifier </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+4.97% </td></tr></tbody></table> This is not the first time that the government has announced a PLI scheme for the electronics industry. Earlier last year, a <a href="https://www.businessinsider.in/policy/economy/news/inside-indias-50000-crore-scheme-to-woo-electronics-manufacturing-including-smartphones/articleshow/76207462.cms">₹50,000 crore PLI scheme</a> was announced to woo electronics manufacturing, including smartphones. Following Wednesday’s announcement, Nifty Auto was the only gainer amongst all other sector indices that were in red in line with the volatile market. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Auto companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price change on December 15 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TVS Motor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+1.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.91% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hero MotoCorp </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mahindra &amp; Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bajaj Auto </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.34% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tube Investments of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ashok Leyland </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.24% </td></tr></tbody></table> P.N. Sudarshan, partner and technology, media, and telecom (TMT) Industry Leader at Deloitte said that, “While this initiative may ameliorate the situation in the medium term, this is even better in the long-term as this would spur the semiconductor manufacturing segment. That would provide opportunities both for import substitution and export propulsion.” Leaders from the industry believe the move will prevent future semiconductor shortages. “In the long-term, issues like sudden surge in demand for semiconductors will also be addressed. This move will also make the Indian manufacturers globally competitive to attract investment in the areas of core competency and cutting-edge technology,” said Sanjay Gupta, managing director at NXP India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tvs-motor-shares-gains-on-report-of-company-to-tie-up-bmw-to-make-electric-vehicle/articleshow/88298075.cms">TVS Motor gains on report of tie-up with BMW to manufacture EVs</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/indias-first-healthtech-unicorn-innovaccer-is-now-valued-more-than-pinelabs-and-sharechat/articleshow/88301389.cms">India’s first healthtech unicorn Innovaccer is now valued more than PineLabs and ShareChat</a>

Checkout chip makers’ stocks that surged on PLI scheme; industry leaders feel the move will make India self-reliant

<ul><li>The Indian government is reportedly planning a ₹76,000 crore incentive package for semiconductor companies.</li><li>It plans to set up over 20 semiconductor units in India over the next six years.</li><li>The new package comes amid the global <keyword id="10561060" type="General" weightage="20" keywordseo="semiconductor-shortage" source="Orion">semiconductor shortage</keyword> that’s affecting every major industry.</li></ul>Incentives worth ₹76,000 crore are reportedly being planned for <keyword id="712417" type="General" weightage="20" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword> in the country. The government plans to set up over 20 semiconductor design, components manufacturing, and display fabrication (fab) units in India over the next six years, according to a <a href="https://economictimes.indiatimes.com/industry/cons-products/electronics/india-plans-a-76000-cr-red-carpet-for-semiconductor-companies/articleshow/88196754.cms">report</a> by ET. This scheme is expected to be sent for approval to the Cabinet next week, and details to follow soon after. Once the cabinet approval arrives, the semiconductor policy will be made and applications sent for companies to invest. The Indian government has plans to set up two fab units for semiconductor displays, and 10 units each for designing and manufacturing components. This could pave the way for India to become an electronics hub especially at a time when the <a href="https://www.businessinsider.in/tech/news/intel-ceo-says-global-chip-shortage-will-not-end-before-2023/articleshow/87200140.cms">semiconductor shortage</a> is affecting industries globally. Semiconductors are key components used in manufacturing various kinds of electronic devices. The worldwide shortage is currently affecting almost every major industry from smartphones, laptops, cars, appliances and more. This is causing a shortage of exports on units, prices going high, and a limited supply of products. According to a <a href="https://www.gizmochina.com/2021/12/09/smartphone-brands-shift-to-fewer-camera-sensors-due-to-semiconductor-shortage-omdia/">report</a> by Omdia, smartphone companies are now moving to higher resolution image sensors but with fewer cameras due to the semiconductor shortage. The semiconductor policy is said to “help deepen India’s manufacturing base,” according to the ET report. Once the cabinet approval arrives, the ministry of electronics and information technology (MeitY) will finalise the details and invite applications from interested companies, the report added. The Indian government’s previous incentive packages for semiconductor manufacturing did not see any takers so with another big package in plan, it’s interesting to see how this one pans out. Companies like Samsung and Intel recently made some big investments in the US. Samsung announced it will build a $17 billion semiconductor factory in Texas. Intel is also spending $20 billion to build two new fab manufacturing plants in Arizona. If India too gets a global company to invest here, it would reduce dependence on importing semiconductors from outside, and also pave the way for local manufacturing in the country. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/oppo-find-n-foldable-smartphone-to-launch-on-december-15/articleshow/88179557.cms" data-type="tilCustomLink">Oppo’s first foldable smartphone ‘Find N’ to launch on December 15, confirms Pete Lau</a> <a href="https://www.businessinsider.in/tech/news/italian-researchers-develop-flying-humanoid-robot-like-iron-man/articleshow/88178772.cms" data-type="tilCustomLink">Italian researchers have come close to building an Iron Man-like humanoid robot with jet engines</a>

Indian government to offer ₹76,000 crore incentive package for semiconductor manufacturing in India, report says

India is likely to promote <keyword id="6358921" type="General" weightage="20" keywordseo="UPI" source="Orion">UPI</keyword>, <keyword id="597447" type="General" weightage="20" keywordseo="rupay" source="Orion">Rupay</keyword> and domestic e-commerce firms further, to de-risk itself from a strategic standpoint, Motilal Oswal Institutional Equities said in a report. "We may see the Government of India move further ahead with <keyword id="10018497" type="General" weightage="20" keywordseo="pli-schemes" source="Orion">PLI schemes</keyword> and provide more sops/opportunities for companies to invest in new age areas such as EV, clean energy (renewables and green hydrogen), robotics, AI, electronics, battery storage, semiconductors, etc", it added. While the current crisis has directly/indirectly impacted most of the sectors from a demand/supply chain perspective, the brokerage said Autos, Consumer, Consumer Durables and Cement have been the most adversely impacted sectors due to the spike in commodity and energy prices. The impact on gross margins for these sectors would be substantial. On the flipside, Metals and O&amp;G have been the direct beneficiaries due to rising prices, while indirect beneficiaries include export-oriented sectors (specifically IT– benefitting from INR depreciation) and non-crude linked sectors. The current <keyword id="2216750" type="General" weightage="20" keywordseo="sanctions-on-Russia" source="Orion">sanctions on Russia</keyword> may lead to a sharp strategic rethinking by countries on their trade and dependence on other countries. From a strategic point of view, more countries are likely to raise their defence spending since this emerges as the single biggest factor in heightened geopolitical situation. Besides, more and more countries may look at promoting their domestic manufacturing capabilities to de-risk themselves from the supply chain disruptions, the report said. Emerging markets have been adversely impacted by the risk-off stance and strengthening USD and these resulted in net FII outflows from most of the markets due to flight of safety. FIIs have sold USD14.2b (net) in equities in CY22 YTD, which is the highest in absolute terms. More importantly, the pace of outflows has accelerated beginning CY22. After selling USD5b each in Jan 2022 and Feb 2022, FII outflows in the first nine days of March 2022 have already crossed USD4.5b. With India running a twin deficit, high energy and commodity prices would weigh on its currency, it said. Russia remains an important global commodity supplier and accounts for nearly 17 per cent of global natural gas production and 10 per cent of global crude oil production. In terms of its share in global minerals trade, Russia currently accounts for 9-10 per cent of the global aluminum trade, 20 per cent of thermal coal exports, 12 per cent of global steel exports (ex-intra-regional trade), and 11-12 per cent of global nickel exports. While the current sanctions have disrupted the supply chain, it would be difficult from a global perspective to immediately find an alternative supplier. This will keep the prices elevated in the short term. Brent has increased 59 per cent in CY22YTD and briefly crossed USD130/bbl while Aluminum and Nickel are trading at their record highs. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/sony-suspends-playstation-store-console-sales-in-russia/articleshow/90119138.cms">Sony suspends PlayStation store, console sales in Russia</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/politics/elections/news/bjp-set-to-return-in-up-with-handsome-win-aided-with-pro-incumbency/articleshow/90119066.cms">BJP set to return in UP with handsome win aided with pro-incumbency</a>

India is likely to promote UPI, Rupay to de-risk itself, says Motilal Oswal report

<ul><li>China witnessed its biggest-ever monthly decline in chip manufacturing in August . </li><li>The slump in chip production in China is coming as both India and the US ramp up efforts to bolster local chip manufacturing.</li><li>The Gujarat government has partnered <keyword id="28423" type="DOMAIN" weightage="20" keywordseo="vedanta" botkeyword="" source="ET" sourcekeytype="COMPANY" meta.keywordsubtype="EQ" meta.aliasname="vedanta" meta.entityname="Vedanta Ltd." meta.entityid="13111" meta.seoname="vedanta-ltd">Vedanta</keyword> and Foxconn, aiming an investment of ₹ 1.54 lakh crore to produce semiconductors. </li></ul> As India and the US double down on domestic <keyword id="712417" type="General" weightage="100" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword>, China witnessed its biggest-ever monthly decline in chip manufacturing in August owing to Covid restrictions and weakening demand. According to the South China Morning Post, the production of integrated circuits (ICs) slumped 24.7 per cent year on year to 24.7 billion units, marking the largest single-month decrease since 1997. This is also the second consecutive month of decline for chip manufacturing. In July, the output nosedived 16.6 per cent to 27.2 billion units. Local output of microcomputers fell 18.6 per cent to 317.5 billion units in August. In August, domestic manufacturing activity contracted for the first time in three months, the report mentioned. A record 3,470 chip-making companies "went out of business in the first eight months of the year", according to statistics from business database platform Qichacha. The slump in chip production in China is coming as both India and the US ramp up efforts to bolster local chip manufacturing. The Gujarat government has partnered Vedanta and Foxconn, aiming an investment of ₹ 1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing. India's semiconductor component market is likel to reach $300 billion in cumulative revenues by 2026, as 'Make in India' and production-linked incentive (PLI) schemes will boost local sourcing of semi-components in the coming years, according to the report by the India Electronics &amp; Semiconductor Association (IESA) and Counterpoint Research. The Indian government has announced an outlay of ₹ 76,000 crore (around $10 billion), under its PLI scheme, separately for the development of a semiconductor and display manufacturing electronics ecosystem. Meanwhile, US President Joe Biden has signed into law the Chips and Science Act, which provides nearly $52 billion in semiconductor production incentives. Intel has kicked off work on the new $20 billion semiconductor plant in the Ohio state in the US. Samsung has floated an idea of investing nearly $200 billion to build 11 more chip plants in the US over the next two decades. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/idbi-trustee-asks-rcap-administrator-to-withdraw-allegations-of-breach-of-confidentiality/articleshow/94280808.cms">IDBI Trustee asks RCap administrator to withdraw allegations of breach of confidentiality</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/obesity-is-linked-to-long-covid-risk/articleshow/94270032.cms">Obesity is linked to long Covid risk</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/global-artificial-intelligence-market-to-reach-450-bn-in-2022/articleshow/94269565.cms">Global artificial intelligence market to reach $450 bn in 2022</a>

China's chip output shrinks as India, US ramp up local manufacturing

<ul><li>The Production-Linked Incentive (<keyword id="53367" type="General" weightage="80" keywordseo="pli" source="Orion">PLI</keyword>) scheme announced by the government of <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> in March 2020, started with three manufacturing sectors. Today it has 15 (including one proposed) under its fold. </li><li>The scheme has sparked investment commitments of ₹3.5-4 lakh crore, which would account for 16% of the total expected industrial capex between fiscals 2023 and 2027. </li><li>About 67% of PLI (Production-Linked Incentive) investments are in new-age sectors and 70% are green. </li></ul>When India set a target of becoming a $5 trillion economy by 2025, it triggered intense introspection on what could be the drivers of this growth. Unlike many of its Asian counterparts through the 2000s, India’s growth has been services-led. Deeming that it’s time for manufacturing — languishing at below 15% in terms of contribution to gross domestic product (GDP) — to step up as a propeller of growth, the government unleashed a plethora of schemes. ‘Make in India’ in 2014 focussed on 25 key sectors and four pillars — new infrastructure, processes, sectors, and mindset. While more schemes ensued, none perhaps resonated as widely across stakeholders, as the Production-Linked Incentive (PLI) scheme announced in March 2020, starting with three manufacturing sectors. The scheme has expanded since, bringing 15 (including one proposed) under its fold. CRISIL MI&amp;A Research estimates that ~₹1.93 lakh crore of incentives in all are up for the taking, that will help vastly scale up and position India as a global manufacturing hub in the next five years. The scheme has sparked further investment commitments of ₹3.5-4 lakh crore, which would account for 16% of the total expected industrial capex between fiscals 2023 and 2027. <cmsannotation type="cmsannotation" annotationid="So what makes the PLI attractive?" comment="subhead2" text="So what makes the PLI attractive?">So what makes the PLI attractive?</cmsannotation> For one, it comes against the backdrop of a broader deglobalisation trend worldwide. The pandemic suddenly foregrounded the need to reduce import dependence and secure supply chains. Two, shifting bilateral ties and geopolitical axes have added to the mix of opportunities available to India, to rise as a reliable manufacturing partner globally. About 67% of PLI investments are in new-age sectors and 70% are green. Nonetheless, a key question remains: will Indian industries become self-sustaining and globally competitive in the given, short time frame? There are plenty of reasons to think this might not happen to the desired extent, at the current level of incentives. <cmsannotation type="cmsannotation" annotationid="India’s stage of manufacturing" comment="subhead2" text="India’s stage of manufacturing">India’s stage of manufacturing</cmsannotation> First, India is at a far-less mature stage of manufacturing vis-à-vis giants such as <keyword id="1334" type="General" weightage="50" keywordseo="china" source="Orion">China</keyword>, Vietnam and Taiwan. Second, domestic manufacturing costs are way higher than peers. Of the 15 PLI sectors, 12 are power intensive. About 10 also have logistics as an important cost variable. And India falls woefully short on both these counts. Power reforms notwithstanding, industrial tariffs at ₹9-11 per unit is almost double than China. It will take years before our logistics costs (currently at 14% of GDP) match those in peer countries. Further, scale and costs are related. Solar module manufacturing is a case in point. Domestic modules are currently 30-35% costlier compared with Chinese counterparts (pre-tax). China currently accounts for 77% of global solar module capacity, with ~300 GW. Even after its targeted expansion to 65-70 GW by 2027, India will still be miniscule, making up merely ~6% of global capacity. Longi Solar, one of China’s leading photovoltaic (PV) players, has set up module manufacturing capacity of 80-85 GW by end-2022 — higher than what India as a whole would have by 2027. Further, Longi Solar have over 22 production facilities spread across wafer, cells and modules, with just one plant in Yunan having 15 GW module manufacturing capacity. This is ~4.3 times the size of the largest module player’s capacity in India. Scale benefits in terms of labour productivity, power discounts and logistics incentives are thus very high for Chinese companies. The situation is no different in sectors such as semi-conductors or batteries. So while PLI 1.0 has been a step in the right direction, the time to think bigger — is now. A PLI 2.0 starting this <keyword id="6358021" type="General" weightage="50" keywordseo="budget" source="Orion">Budget</keyword> — that brings more sectors under the scheme and expands incentives for the established ones, would show that India is serious about taking its commitment towards manufacturing to the next level. Moreover, with climate change closing in, more new-age sectors (electrolysers, green hydrogen, green ammonia, grid storage, and transmission equipment) will need incentives to address those concerns and make value chains competitive. Such incentives and support would be needed at least for a decade before India can establish itself as a strong global contender both, in terms of scale and pricing. (Hetal Gandhi is Director- Research, <keyword id="15471345" type="General" weightage="50" keywordseo="crisil-market-intelligence-and-analytics" source="Orion">CRISIL Market Intelligence and Analytics</keyword>)

The time for PLI 2.0 is now: Budget 2023-24 needs to deliver if India is to become the factory of the world

<ul><li>India set out a $10 billion push to bring <keyword id="6451058" type="General" weightage="20" keywordseo="semiconductor" source="Orion">semiconductor</keyword> chipset manufacturing in the country back in 2021. </li><li>Now, it seems that the government’s plans are coming to fruition with the first tangible multi-billion dollar investment announcement. </li><li>Mining giant <keyword id="28423" type="General" weightage="50" keywordseo="vedanta" source="Orion">Vedanta</keyword> has much bigger plans – at $20 billion – to set up a semiconductor and display manufacturing facility in the country. </li></ul><keyword id="13212492" type="General" weightage="80" keywordseo="ismc" source="Orion">ISMC</keyword>, a joint venture between Abu Dhabi-based <keyword id="3315695" type="General" weightage="50" keywordseo="next-orbit-ventures" source="Orion">Next Orbit Ventures</keyword> and Israel’s <keyword id="2489740" type="General" weightage="50" keywordseo="tower-semiconductor" source="Orion">Tower Semiconductor</keyword>, has announced that it has signed a memorandum of understanding (MoU) with the Karnataka government to set up a semiconductor chip manufacturing plant. According to a <a href="https://twitter.com/investkarnataka/status/1520656115276550144">statement</a> by the Karnataka state government, ISMC will invest up to $3 billion in the state for its chip manufacturing facility. <keyword id="28115" type="General" weightage="80" keywordseo="intel" source="Orion">Intel</keyword>, the company which powers most of the computers in the world, has announced plans to acquire Tower Semiconductor, one of the partners of the ISMC joint venture. <div type="Article" hostid="261" msid="91100753" title="India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="India’s semiconductor plans get a big, needed boost" comment="subhead" text="India’s semiconductor plans get a big, needed boost">India’s semiconductor plans get a big, needed boost</cmsannotation> India has been stressing the need for diversifying its supply chain when it comes to semiconductor chips, <a href="https://www.businessinsider.in/policy/economy/news/india-makes-a-10-billion-bet-to-woo-chip-makers-at-home/articleshow/88298295.cms">announcing a massive $10 billion</a> (approx. ₹76,000 crore) plan to attract chipmakers from around the world to set up shop in India. Now, it looks like those plans are coming to fruition with ISMC’s $3 billion announcement. Earlier, India was <a href="https://www.businessinsider.in/tech/news/india-is-wooing-tsmc-intel-and-globalfoundries-to-set-up-semiconductor-plants-in-the-country/articleshow/91100753.cms">said to be in talks</a> with semiconductor giants like <keyword id="171929" type="General" weightage="50" keywordseo="tsmc" source="Orion">TSMC</keyword>, Intel and GlobalFoundries to set up shop in India. <cmsannotation type="cmsannotation" annotationid="Vedanta in ‘advanced talks’ with three major Indian states" comment="subhead" text="Vedanta in ‘advanced talks’ with three major Indian states">Vedanta in ‘advanced talks’ with three major Indian states</cmsannotation> Indian multinational mining giant Vedanta could also be looking at diversifying its business by jumping onto the <keyword id="712417" type="General" weightage="20" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword> bandwagon. According to a <a href="https://www.reuters.com/world/india/chip-consortium-ismc-plans-3-bln-plant-indias-karnataka-2022-05-01/">Reuters</a> report, the Mumbai-based company headed by founder Anil Agarwal is looking at three major Indian states – Gujarat, Maharashtra and Telangana, to set up a semiconductor chip manufacturing plant. The report further adds that Vedanta has planned an investment outlay of $20 billion for its semiconductor and display manufacturing plans. This is double that of the Indian government’s PLI (production-linked incentive) scheme for chipmakers. The Indian government has stated that the Indian semiconductor market is forecast to grow four-fold from $15 billion in 2020 to $63 billion in 2026. With the ongoing global semiconductor chipset shortage and the increasingly volatile geopolitical scenario between the US and Taiwan, and China, on the other hand, the Indian government’s urgency to build up domestic semiconductor manufacturing capabilities is understandable. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/india-is-wooing-tsmc-intel-and-globalfoundries-to-set-up-semiconductor-plants-in-the-country/articleshow/91100753.cms">India is reportedly in talks with TSMC, Intel and other semiconductor giants to set up local production plants in the country</a> <a href="https://www.businessinsider.in/policy/economy/news/india-makes-a-10-billion-bet-to-woo-chip-makers-at-home/articleshow/88298295.cms">India makes a $10 billion bet to woo chip makers at home</a> <a href="https://www.businessinsider.in/business/corporates/news/the-big-boss-of-indias-largest-consumer-company-is-worried-about-stagflation-and-unprecedented-inflation/articleshow/91251341.cms">The big boss of India's largest consumer company is worried about stagflation and unprecedented inflation</a>

Semiconductor manufacturing in India gets a boost with ISMC’s proposed $3 billion plant in Karnataka

<ul><li>The Indian government is reportedly working on a multi-billion-dollar package to promote semiconductor manufacturing in India.</li><li>Companies like TSMC, Intel and AMD are some of the companies that are part of the discussions.</li><li>The demand for semiconductors in India is expected to reach $100 billion by 2025.</li></ul>The Indian government is reportedly working on a multi-billion-dollar capital support and production linked incentive (PLI) plan to promote manufacturing of semiconductors in the country. According to a TOI <a href="https://timesofindia.indiatimes.com/india/semiconductor-crunch-govt-plans-mega-package-to-woo-investments/articleshow/87443837.cms">report</a>, senior officers from the government are currently in active discussions with some of the top semiconductor manufacturers such as Taiwan Semiconductor Manufacturing Co. (TSMC), Intel, AMD, United Microelectronics Corp and Fujitsu. “The government is willing to talk capital support. We are closer to it like never before,” said a source part of the process. As per the report, the push to bring semiconductor manufacturers to India is being coordinated and closely monitored by the Prime Minister’s Office. Multiple ministries have been tasked with coming up with an attractive policy to bring the companies to the country. “The idea is to have representatives from various ministries and departments who are in charge of industries that are impacted by the semiconductor shortage,” the source added. The support to be provided by the government is expected to include financial support on capital expenditure and tariff cuts on certain components. The government may also offer additional benefits from schemes like Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and PLI. As India does not produce any semiconductors, the country’s demands are met with imports. The demand for semiconductors in India will reportedly reach around $100 billion by 2025, up from the current demand of $2 billion. While earlier attempts to attract semiconductor manufacturers to the country have failed, the government is confident that a large and fast-growing electronics market and requirements in other sectors such as defence and auto will push the companies to invest in India. “The domestic demand is going to be very high. The government expects domestic production of electronics to move up to $350-400 billion by 2025, against the estimated $75 billion now. This will be a big enabler to get in investments,” the source added. SEE ALSO: <a href="https://www.businessinsider.in/science/environment/news/glasgow-cop26-summit-pm-modi-announces-net-zero-emissions-by-2070-for-india/articleshow/87477901.cms">Glasgow COP26 summit: PM Modi announces net zero emissions by 2070 for India</a> <a href="https://www.businessinsider.in/tech/news/us-india-japan-australia-to-sign-pact-for-stepping-up-chip-production-reduce-dependence-on-china/articleshow/86368995.cms">US, India, Japan, Australia to sign pact for stepping up chip production, reduce dependence on China</a> <a href="https://www.businessinsider.in/business/news/government-approves-26058-crore-pli-scheme-for-auto-and-drone-industries/articleshow/86228285.cms">Government approves ₹26,058 crore PLI scheme for auto and drone industries</a>

Indian government is reportedly working on a package to push semiconductor production in India

As <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> doubles down on local manufacturing of electronics hardware, the country saw an investment of Rs 2,595 crore and production worth Rs 67,275 crore under the Production Linked Incentive (<keyword id="53367" type="General" weightage="100" keywordseo="pli" source="Orion">PLI</keyword>) scheme for large-scale electronics manufacturing, of which, 31 per cent or Rs 20,568 crore worth products were exported (till June 2021), the <keyword id="13014635" type="General" weightage="20" keywordseo="Economic-Survey-2021-22" source="Orion">Economic Survey 2021-22</keyword> said. The PLI for large-scale electronics manufacturing was notified on April 1, 2020 which provides an incentive of 4 to 6 percent on incremental sales (over base year) to eligible companies involved in mobile phone manufacturing and manufacturing of specified electronic components, including assembly, testing, marking and packaging (<keyword id="2035122" type="General" weightage="20" keywordseo="atmp" source="Orion">ATMP</keyword>) units. According to the Survey, under the PLI scheme for IT hardware (notified on March 3, 2021) the total sales of manufactured goods in the target segment stood at Rs 503 crore, with Rs 16.50 crore investment (as per Q2 FY21). The target segment under the PLI scheme includes laptops, tablets, all-in-one PCs and servers. This PLI scheme extends an incentive in the range of 1 to 4 per cent on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four years. Recently, the government approved an outlay of Rs 76,000 crore ($10 billion) for the development of semiconductors and display manufacturing ecosystem. "The government's intervention to boost this industry has come at a time when the global economy is facing an acute shortage of semiconductors due to severe disruptions in supply chains," said the Survey. The PLI and other schemes to boost semiconductors will not only help domestic companies to overcome the challenges posed by Covid-19 but also assist them to become globally competitive, especially in chip making, it added. Semiconductors are an integral part of modern technology used in automobiles and its components, electronic and medical devices. The government had notified the National Policy on Electronics 2019 (NPE 2019) scheme to position India as a global hub for Electronics System Design and Manufacturing (<keyword id="819123" type="General" weightage="20" keywordseo="esdm" source="Orion">ESDM</keyword>) by encouraging and driving capabilities in the country for developing core components, including chipsets. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/opinion-there-should-be-continued-focus-on-building-urban-infrastructure-and-sustainable-smart-cities/articleshow/89247793.cms">OPINION: There should be continued focus on building urban infrastructure and sustainable smart cities</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/india-climbs-35-ranks-in-global-innovation-index-but-lags-in-patents-economic-survey/articleshow/89247222.cms">India climbs 35 ranks in Global Innovation Index but lags in patents: Economic Survey</a>

India saw production worth ₹67,275 crore under PLI for large-scale electronics, reveals Economic Survey 2021-22

<ul><li>The global $450 billion <keyword id="145965" type="TECHNOLOGY" weightage="20" keywordseo="semiconductors">semiconductors</keyword> industry got blindsided — due to the global pandemic — after a massive demand for semiconductors.</li><li>The crunch led to supply chain issues as the industry relied on a few giant players.</li><li>Ford, Nissan, Volkswagen, Fiat Chrysler and Toyota were some of the top automakers that curtailed production amid a global semiconductor shortage.</li><li>Operations of mobile manufacturers Lava and Micromax were almost stuttered to a halt after its <keyword id="423461" type="PERSON" weightage="20" keywordseo="chipset">chipset</keyword> supplier, MediaTek, ran out of stock.</li></ul>A few months back, when the companies worldwide started recovering from the pandemic-hit lows, they had no idea that another challenge was waiting for them. From electronic appliance makers to car manufacturers and mobile makers — all had to hold back the production after the $450 billion industry for semiconductors got ravaged by the after effects of the Covid-19 pandemic. A massive surge in demand for consumer electronics, globally, due to work from home practices adopted by firms and a sharp uptick in personal vehicle sales amid the virus fear caused the crisis. The semiconductors form the DNA of a wide variety of new-age gadgets like smartphones, computers, industrial equipment and cars. They are also sought for emerging markets of AI, computing and advanced wireless networks. <cmsannotation type="cmsannotation" annotationid="Manufacturers had to shut production plants" comment="subhead" text="Manufacturers had to shut production plants">Manufacturers had to shut production plants</cmsannotation> This could not have come at a worse time for the beleaguered businesses — which just began to show the signs of recovery, and the sales were beginning to rebound after a torrid first half. In December, India's largest automotive components maker Robert Bosch was grappled with challenges<a href="https://www.bloombergquint.com/business/bosch-india-flags-severe-shortage-of-critical-components-to-indian-automakers"> after a severe shortage</a> of imported components, hampering its ability to cater to the automotive market demand in the fifth largest automobile market worldwide. Just days after Bosch, One of India's largest automakers Mahindra &amp; Mahindra, <a href="https://qz.com/india/1959077/ford-india-mahindra-mahindra-hit-by-semiconductor-shortage/">said </a>it was bracing itself after the recent disruption caused by the industry's semiconductors shortage. "Operations of the company in the automotive sector will be affected by global supply shortage of micro-processors (semiconductors) used in electronic control units (ECUs) which are supplied by Bosch," automaker Mahindra said in a <a href="https://qz.com/india/1959077/ford-india-mahindra-mahindra-hit-by-semiconductor-shortage/">statement</a>. Ford, Nissan, Volkswagen, Fiat Chrysler and Toyota were some of the top automakers that curtailed production amid a global semiconductor shortage. The shortage impacted production in other industries too, such as smartphones and electronics. Operations at mobile manufacturer Lava and Micromax were almost stuttered to a halt<a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/mediatek-to-resolve-chipset-shortage-in-india-says-chairman/articleshow/79672229.cms?from=mdr"> after its chipset supplier MediaTek </a>ran out of stock. The chip shortages also forced Apple to push back the rollout of its latest lineup of iPhones until early November. <cmsannotation type="cmsannotation" annotationid="What are semiconductors, and why did companies run out of them in 2020?" comment="subhead" text="What are semiconductors, and why did companies run out of them in 2020?">What are semiconductors, and why did companies run out of them in 2020?</cmsannotation> Semiconductors are typically silicon chips that perform control and memory functions in products ranging from computers and cellphones to vehicles and microwave ovens. The world saw an unprecedented demand for servers, internet connectivity and cloud usage as online collaboration grew massively during work from home. And according to the EY report, the semiconductors industry was already facing a demand-supply crisis and the delay in imports from China after the Indo-China clash at the Galwan Valley added fuel to the fire. The OEM’s faced <a href="https://www.thehindu.com/business/Economy/ladakh-face-off-industry-flags-delay-in-china-imports/article31918011.ece">massive supply chain issues</a> after the government implemented curbs on imports from china. The industry also relied on a few global players — which led to the crisis after a huge demand surge. China and Taiwan own a significant portion of the semiconductor manufacturing market in the world. “Semiconductor manufacturing is a complex global intertwined ecosystem, which has led to a supply chain that is vulnerable to macroeconomics, geopolitics and natural disasters,” the report added. The auto industry is using more semiconductors than ever before in new vehicles with electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems. According to data research firm International Data Corporation (IDC) forecasts that globally, the mobile phone semiconductor revenues will grow by 11.4% in 2021 to $128 billion. Here’s how the demand for semiconductor stacks up around industries in India <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Demand Share </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Value </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Communication </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">33% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$136 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Computer </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">28.50% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$117 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$54.7 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Automotive </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.20% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$50.2 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Industrial </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.90% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$48.9 billion </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Government </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.2 billion </td></tr></tbody></table>Source: Semiconductor Industry Association, 2020 <cmsannotation type="cmsannotation" annotationid="Can you set up a chipset business in India?" comment="subhead" text="Can you set up a chipset business in India?">Can you set up a chipset business in India?</cmsannotation> The EY report highlighted that the semiconductor manufacturing process requires unique and sometimes scarce raw materials and chemical substances. Due to their unique and specialised character, these tend not to be widely available and can sometimes only be mined in conflict areas. The scarcity of semiconductors in the past few months brutally exposed India's original equipment manufacturers' soft underbelly — their heavy reliance on imported components. The government has also introduced an ambitious production-linked incentive (PLI) schemes to encourage in-house production. The most important here is semiconductors or chips that form the central component of items from auto to laptops and mobile phones — as the current disruptions showed, it is an area where we can ill-afford to depend on others. <div type="image" title="Capture" msid="81137751" hostid="261"></div> Although the country has developed expertise in chip designing, it still lacks fabrication facilities, requiring huge investments. Microprocessor chips are produced in high technology facilities called semiconductor fabrication units or simply FAB units. India currently has a limited number of fabless startups and companies with state-of-the-art R&amp;D centres focusing on chip design. <a href="https://www.deccanherald.com/business/is-semiconductor-manufacturing-in-india-an-unworkable-project-863338.html">Reports</a> indicate that semiconductor fabs have investments starting around $8 billion, and the numbers climb rapidly. The business also requires hefty running costs, and technology needs to be upgraded typically every 3-4 years. This wouldn’t be the first time India would try to build semiconductors fabrication units. Earlier in 2006, a <a href="https://www.business-standard.com/article/companies/semindia-infosys-may-sign-mous-with-andhra-today-106021601088_1.html">Bangalore-based SemIndia signed a contract </a>with the Andhra Pradesh government to set up a wafer manufacturing unit. For which, it was allocated 1,200 acres of land, but the $3 billion project could not take off. The government suffered a loss of ₹300 crore. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/nurecas-100-crore-ipo-heres-how-to-check-share-allotment-status/articleshow/81135236.cms" data-type="tilCustomLink">Nureca’s ₹100 crore IPO: Here’s how to check share allotment status</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/defense/news/india-signs-usd-50-million-defence-loc-agreement-to-boost-maritime-capabilities-of-maldives/articleshow/81135673.cms">India signs USD 50 million defence LoC agreement to boost maritime capabilities of Maldives</a>

India needs chipset manufacturers — lots of them. Here is why.

New Delhi, June 2 (IANS) Calling the production-linked incentive scheme a "game changer", industry body India Cellular and Electronics Association on Tuesday said that the scheme will help boost growth in mobile phone manufacturing in India as well as meet exports targets assigned under the National Policy on Electronics (NPE 2019). "This scheme is a game changer for the nation and the industry," Pankaj Mohindroo, Chairman, ICEA, said in a statement. Union Minister for Electronics and IT Ravi Shankar Prasad on Tuesday launched three major schemes to boost manufacture of electronics in the country. The minister launched the Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, which were approved by the Union Cabinet in March. The three schemes would entail an outlay of about Rs 50,000 crore. According to the IT Ministry, India's production of electronics grew from $29 billion in 2014 to $70 billion in 2019. The growth in mobile phone manufacturing in particular has been remarkable during this period. From just two mobile phone factories in 2014, India now has become the second largest mobile phone producer in the world, the IT Ministry said. Production of mobile handsets in 2018-19 reached 29 crore units worth Rs 1.70 lakh crore from just six crore units worth Rs 19,000 crore in 2014. The three new schemes unveiled on Tuesday are expected to attract substantial investments, increase production of mobile phones and their components to around Rs 10 lakh crore by 2025 and generate around five lakh direct and 15 lakh indirect jobs, the ministry said. --IANS gb/na

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