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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 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><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>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

New Delhi, Apr 1 () The government on Wednesday notified three schemes involving total incentives of around Rs 48,000 crore to boost local electronics manufacturing and create 20 lakh direct and indirect jobs by 2025. The government notified production linked incentive scheme (PLI) for large scale electronics manufacturing, the scheme for promotion of manufacturing of electronic components and semiconductors (SPECS), and the modified electronics manufacturing clusters (EMC 2.0) scheme. It expects to attract Rs 1 lakh crore investment in the sector and generate manufacturing revenue potential of Rs 10 lakh crore by 2025. "The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging," the notification said. Under the scheme, electronic manufacturing companies will get an incentive of 4 to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies over a period of next 5 years. "The scheme shall only be applicable for target segments namely mobile phones and specified electronic components," the notification said. The production of mobile phones in the country has surged eight-times in the last four years from around Rs 18,900 crore in 2014-15 to Rs 1.7 lakh crore in 2018-19 and the domestic demand is almost completely being met out of domestic production. The SPECS notified for manufacturing of electronics components and semiconductors has a budget outlay of Rs 3,285 crore spread over a period of eight years. The notified EMC 2.0 has a total incentive outlay of Rs 3,762.25 crore spread over a period of 8 years with an objective to create 10 lakh direct and indirect jobs under the scheme. The government estimates that PLI scheme, domestic value addition for mobile phones is expected to rise to 35-40 per cent by 2025 from the current level of 20-25 per cent and generate additional 8 lakh jobs, both direct and indirect. The government estimates that push for manufacturing of electronics components and electronic chips will create around 6 lakh direct and indirect jobs. The EMC 2.0 scheme will provide financial assistance up to 50 per cent of the project cost subject to a ceiling of Rs 70 crore per 100 acres of land for setting up of Electronics Manufacturing Cluster projects. Electronic manufacturing clusters to be set up under the scheme will be spread in an area of 200 acres across India and 100 acres in North East part of the country. PRS PRS MRMR

Govt notifies schemes with Rs 48,000 cr incentive to boost electronics production

<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>Over 22 firms including Apple, Samsung, Lava line up with proposals to manufacture mobile phones in India</li><li>Government's production-linked incentive (PLI) scheme for <keyword id="2922097" type="PERSON" weightage="20" keywordseo="mobile-phone-manufacturing">mobile phone manufacturing</keyword> expected to create around 12 lakh jobs</li><li>There is no price limit for Indian companies under the scheme.</li></ul> As many as 22 domestic and international firms, including iPhone maker Apple's contract manufacturers as well as Samsung, Lava, Dixon and so forth, have lined up with proposals for mobile phones production worth Rs 11 lakh crore over the next five years, Union Telecom and IT Minister <keyword id="6354886" type="PERSON" weightage="20" keywordseo="Ravi-Shankar-Prasad">Ravi Shankar Prasad</keyword> said on Saturday. The minister said these proposals under the government's Rs 41,000-crore production-linked incentive (PLI) scheme for mobile phone manufacturing are expected to create around 12 lakh jobs, 3 lakh direct and 9 lakh indirect employment opportunities, in the country. "There will be huge (mobile phone) production of around Rs 11 lakh crore, huge export of around Rs 7 lakh crore and great employment opportunity for 3 lakh direct and 9 lakh indirect people. I personally thank all the companies that have applied," Prasad told reporters. He said that a total of 22 companies have filed applications under the PLI scheme from various countries including Taiwan, South Korea, Germany, Austria, etc. "The benchmark for international companies was that they make mobile phones priced at or above Rs 15,000. International companies that have applied are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," Prasad said. Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. There is no price limit for Indian companies under the scheme. In terms of revenue, Apple accounts for 37 per cent and Samsung 22 per cent for global sales of mobile phones and the PLI scheme is expected to increase their manufacturing base manifold in the country, an official statement issued by the Ministry of Electronics and IT (Meity) said. The minister further said these companies will make thousands of crores investments based on the approval of their proposal. Prasad said Indian companies, including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics, have applied under the scheme and 10 companies have filed applications under the Specified Electronic Components Segment. The companies that have applied for components production of around Rs 45,000 crore include AT&amp;S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync. There were no applications from Chinese companies under the scheme. The minister said India is not averse to investment from any country but companies will have to follow rules related to security clearance, etc. The government notified production linked incentive scheme for large scale electronics manufacturing, the scheme for promotion of manufacturing of electronic components and semiconductors, and the modified electronics manufacturing clusters (EMC 2.0) scheme. The government expects to attract Rs 1 lakh crore investment in the sector and sees a target manufacturing revenue potential of Rs 10 lakh crore by 2025. The fresh proposals have exceeded the government's manufacturing revenue target but the final outcome will depend on the decision of the screening committee that will select projects eligible for incentives.

Apple vendors, Samsung, others line up with ₹11-lakh cr mobile phone mfg proposals: Prasad

The department for promotion of industry and internal trade (<keyword id="19952901" type="General" weightage="20" keywordseo="DPIIT" source="keywords" meta.keywordsubtype="org" meta.entityname="DPIIT" meta.hostid="261" meta.entityid="DPIIT">DPIIT</keyword>) on Monday asked <keyword id="19957196" type="General" weightage="20" keywordseo="white-goods" source="keywords">white goods</keyword> manufacturers to participate in large numbers to avail fiscal benefits under the <keyword id="19952889" type="General" weightage="20" keywordseo="production-linked-incentive" source="keywords">production linked incentive</keyword> scheme for the sector as the response has been muted so far. Additional Secretary in the DPIIT Rajeev Singh Thakur said that the department has again reopened the application window for the PLI (production linked incentive) scheme for white goods (<keyword id="20360726" type="General" weightage="20" keywordseo="ACs" source="keywords">ACs</keyword> and LED lights). The application window is open from July 15 to October 12. "In the PLI in white goods scheme, somehow the response has been muted. ...Probably due to various reasons not sufficient response has come. So I request (the industry) to have a look and probably this time, you can consider (applying)," Thakur said at the CII Consumer Electronics and Durables Summit 2024 here. So far, 66 applicants with committed investment of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme. The Union Cabinet had given approval for the PLI scheme for white goods for <keyword id="19914449" type="General" weightage="20" keywordseo="manufacturing" source="keywords">manufacturing</keyword> of components and sub-assemblies of Air Conditioners (ACs) and LED lights on April 7, 2021. The scheme is to be implemented over a seven-year period, from 2021-22 to 2028-29, and has an outlay of Rs 6,238 crore. He added that the department can hold talks with the industry separately on issues like quality control orders and logistics. Thakur told the industry that the time is right to increase investments into the country as the government has enhanced its capex and taken steps to promote <keyword id="19996629" type="General" weightage="20" keywordseo="ease-of-doing-business" source="keywords">ease of doing business</keyword>. The public capex in the last 10 years is growing at a fast pace in areas like highways, expressway, ports, airports and railways, but the commensurate response of the private sector "somehow is not up to the expectation", he said. Earlier speaking at the event, DPIIT Secretary Amardeep Singh Bhatia said that a lot of steps have been taken to promote ease of doing business, cutting down compliance burden and decriminalisation of minor offences. The government has also recently approved 12 industrial townships and the industry can look at investing there. He added that capital availability is not an issue now and the government has also provided protection to the industry from predatory imports. Schemes like PLI and semiconductor mission have been rolled out to promote manufacturing and "now we want the industry" to ensure that they have necessary collaborations in place for technology and investments. The industry should do collaborations not only to target the domestic market but also become part of global value chains. "That is an expectation we are having from the entire industry and I think industry will rise to meet these expectations... We have a huge demographic dividend and the industry should take advantage of this otherwise we will miss it," Bhatia added. He also said that there is no paucity of adequate skilled labour in the country and logistics costs too are coming down. On logistics, he cited examples of Amazon and Flipkart selling goods in the remotest part of the country. "I don't think industry should look at the current domestic demand only for collaborations. They should look at the future and export market also in addition to the domestic market," he said, adding expenditure on research and development is "abysmally" low and that needs to be enhanced. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-october-2024/slidelist/113809612.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-october-2024/slidelist/113809612.cms" target="_blank">Upcoming cars launching in India in October 2024</a><a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-october-2024/slidelist/113804125.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-october-2024/slidelist/113804125.cms" target="_blank">Upcoming smartphones launching in India in October 2024</a><a href="https://www.businessinsider.in/stock-market/news/krn-heat-exchanger-ipo-allotment-check-allotment-status-gmp-listing-date-and-more/articleshow/113801258.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/news/krn-heat-exchanger-ipo-allotment-check-allotment-status-gmp-listing-date-and-more/articleshow/113801258.cms" target="_blank">KRN Heat Exchanger IPO allotment – Check allotment status, GMP, listing date and more</a>

Govt asks white goods industry to apply for manufacturing sops in large numbers

New Delhi, June 11 (IANS) With a three-pronged strategy (restart, restore and resurgence), India can achieve $100 billion in mobile phones and nearly $40 billion in component exports by 2025, a new report said on Thursday. The strategy document titled "Mobile Manufacturing in a post-COVID-19 World" by industry body India Cellular and Electronics Association (ICEA) and consultancy major EY, offers a roadmap for the Indian industry to become a global supplier of mobile phones in a world where two countries -- China and Vietnam -- and five global companies dominate over 80 per cent of the world's export market. Nearly 198 countries import mobile phones, and till recently, only two countries -- China and Vietnam -- were among the exporters. India joined the ranks as a third with a modest $3 billion exports in 2019-20. It now aims to target the number two spot. "The mobile manufacturing and components sector is ready to lead India's post COVID-19 exit strategy. Production has restarted. We hope to hit 100% production by August," Pankaj Mohindroo, Chairman, ICEA, told reporters in a video call. India earlier this month launched three major schemes to boost manufacture of electronics in the country -- 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. The three schemes would entail an outlay of about Rs 50,000 crore. "As the PLI scheme kicks in, we plan to ramp up global exports from India. There isn't a moment left to waste," Mohindroo added. He said that the Indian mobile phone manufacturing industry is moving forward harmoniously. "There is no such this as a domestic lobby and an international lobby here...We cannot work only on the supposedly big Indian market. We will have to export," he said, adding that in the next four to five years the big global companies will be manufacturing in India for their global exports. ICEA represents mobile and component manufacturers such as Apple, Motorola, Xiaomi, Nokia, Foxconn, Wistron, Flextronics, Lava, Vivo and others. The plan prepared by ICEA and EY which aims at transforming mobile manufacturing and components into India's largest export within the next 3-4 years, aligns closely with the government's National Policy on Electronics (NPE-2019). "The introduction of the incentive schemes like PLI, SPECS and EMC will bring resurgence in the manufacturing environment and create a competitive global ecosystem for India to capture the global market share of mobile phones, parts and accessories," said Bipin Sapra, Indirect Tax Partner Telecom sector, EY India. The report also pointed out areas of improvement, such as the need to shift large-scale global value chains, reduce cost of inputs and the need to increase competitiveness by building a low-cost domestic ecosystem and seeking partnership with states to address India's disabilities. From just two mobile phone factories in 2014, India now has become the second largest mobile phone producer in the world, according to the IT Ministry. --IANS gb/na

India mobile handset industry can reach $100bn in exports by 2025: ICEA-EY

<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

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

PLI scheme a 'game changer' for mobile manufacturing: ICEA

New Delhi, Mar 21 () The Union Cabinet has cleared three schemes involving a total incentive of around Rs 48,000 crore to boost electronics manufacturing in the country, Telecom and IT Minister Ravi Shankar Prasad said on Saturday.The government is expecting to generate manufacturing revenue potential of Rs 10 lakh crore and create direct and indirect jobs for 20 lakh people by 2025 through these schemes, he said.Besides this, the Cabinet in its meeting held on Friday also approved incentives for medical devices to reduce dependency on import of electronic products for medical care in the country. "Two long-term policy decisions have been taken to make India a big hub of manufacturing. First in case of electronics, second in case of pharma and also medical devices. Cabinet has approved production linked-incentive for electronics companies. We will give Rs 40,995 crore in the coming five years for production linked-incentive," Prasad said.Under the scheme, electronic manufacturing companies will get an incentive of 4 to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies over a period of next 5 years.Industry body India Cellular and Electronics Association said that the PLI scheme is of global scale which not only spur manufacturing but more importantly exports of mobile handsets at a global scale. "The National Policy for Electronics 2019 envisions India to reach a mobile phone production of USD 190 billion by 2025, of which USD 110 billion would be exported. PLI is the policy intervention to support the ambition to build the electronics sector, where the main focus remains on manufacturing of mobile phones and components," ICEA Chairman Pankaj Mohindroo said.The Cabinet approved scheme for promotion of manufacturing of electronics components and semiconductors with a budget outlay of Rs 3,285 crore spread over a period of 8 years. It also approved revised version for electronics manufacturing clusters with a total incentive outlay of Rs 3,762.25 crore spread over a period of 8 years with an objective to create 10 lakh direct and indirect jobs under the scheme. "Because of these three schemes, we hope to generate manufacturing revenue potential of Rs 10 lakh crore by 2025 and generate direct and indirect jobs for 20 lakh people," Prasad said. The government estimates that PLI scheme, domestic value addition for mobile phones is expected to rise to 35-40 per cent by 2025 from the current level of 20-25 per cent and generate additional 8 lakh jobs, both direct and indirect."This incentive is linked to production and investment in India. We also make 3-4 Indian companies also champion companies," Prasad said.The government estimates that push for manufacturing of electronics components and electronic chips with create around 6 lakh direct and indirect jobs."If India has to progress in the field of electronics then it should also become a centre for component manufacturing for electronics, telecommunications, consumer electronic, medical electronics, strategic electronics etc. This is investment in the downstream value chain. We will give 25 per cent incentive on capital expenditure," Prasad said.The EMC 2.0 scheme will provide financial assistance upto 50 per cent of the project cost subject to a ceiling of Rs 70 crore per 100 acres of land for setting up of Electronics Manufacturing Cluster projects. "Electronic manufacturing clusters will be spread in an area of 200 acres across India and 100 acres in North East part of the country. Whoever will make investment of Rs 300 crore under this scheme will be given incentives," Prasad said. The minister said that the production of mobile phones in the country has gone up 8 times in last 4 years from around Rs 18,900 crore in 2014-15 to Rs 1.7 lakh crore in 2018-19 and the domestic demand is almost completely being met out of domestic production. "It is extremely critical to keep it (implementation of schemes) simple. Quick disbursement of money on the basis of one or at-most two parameters and ensure annual signoff with no retrospective claims on industry on incentives disbursed," MAIT President Nitin Kunkolienker said. PRS MKJ

Cabinet approves schemes to boost electronics mfg with Rs 48,000 cr incentives

<ul><li>The COVID-19 pandemic triggered a massive demand for servers, internet connectivity and cloud usage.</li><li>The supply chain that more often than not started in China, which is a world leader in making semiconductor chips, broke as the world went into a lockdown.</li><li>Computers, <keyword id="6354775" type="TECHNOLOGY" weightage="20" keywordseo="Smartphones">smartphones</keyword>, cars and microwave ovens are only some of the products that heavily rely on semiconductor chips. </li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/" data-type="tilCustomLink" target="_blank">Business Insider</a>.</li></ul><keyword id="145965" type="TECHNOLOGY" weightage="20" keywordseo="semiconductors">Semiconductors</keyword> are typically silicon chips that perform control and memory functions in a wide range of products⁠ — from computers and smartphones to cars and microwave ovens, to name a few. And there are very few of them, compared to the demand, since the pandemic. So much so that car makers like Ford, Nissan, Volkswagen, Fiat Chrysler and Toyota recently cut back production citing a shortage in <a href="https://www.businessinsider.in/tech/news/india-needs-chipset-manufacturers-lots-of-them-here-is-why-/articleshow/81137745.cms">semiconductors.</a> And to fill that void that is stalling the manufacturing of electronic products, India may soon start offering a cash incentive, worth a whopping billion dollars, to companies that make semiconductor chips in India. “The government will give cash incentives of more than $1 billion to each company which will set up chip fabrication units,” an <a href="https://www.reuters.com/article/us-india-semiconductor-exclusive-idUSKBN2BN12J?taid=60643ff5a0a3570001acac1e&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter">unnamed government official told Reuters</a>. Private companies will be ordered to buy ‘made in India’ chips so that these new fabrication units have assured buyers for their product. As it stands today, demand is not a problem for chip makers anywhere in the world. There is a huge addressable market that is growing by the day with the proliferation of electric vehicles⁠ and fancy cars loaded features like Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems. Here’s how the global demand for semiconductor stacks up around industries <table style="border-width: initial; border-style: none; background-color: rgb(255, 255, 255); font-size: 16px; line-height: 1.6em; box-shadow: none; width: 914px; font-family: Merriweather; padding-bottom: 10px !important; background-image: inherit !important; background-position: inherit !important; background-size: inherit !important; background-repeat: inherit !important; background-attachment: inherit !important; background-origin: inherit !important; background-clip: inherit !important;"></colgroup><tbody><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Category </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Demand Share </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Total Value </td></tr><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Communication </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">33% </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">$136 billion </td></tr><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Computer </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">28.50% </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">$117 billion </td></tr><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Consumer </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">13.30% </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">$54.7 billion </td></tr><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Automotive </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">12.20% </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">$50.2 billion </td></tr><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Industrial </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">11.90% </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">$48.9 billion </td></tr><tr><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">Government </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">1.30% </td><td style="border-width: 0.990765pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: bottom; overflow: hidden; overflow-wrap: break-word;">$5.2 billion </td></tr></tbody></table>Source: Semiconductor Industry Association, 2020 cited by EY The COVID-19 pandemic triggered a massive demand for servers, internet connectivity and cloud usage as more people started working from home and, therefore, were in need for online collaboration. The pandemic broke the supply chain that more often than not started in China, which is a world leader in making semiconductor chips. The shortage of chips was worsened as soldiers from India and China locked horns in the Galwan valley in Ladakh. The arrival of imports from China were delayed due to the military and diplomatic standoff. A big part of India’s Atmanirbhar (self-reliance) programme is weaning itself from relying on China for key inputs. And the Narendra Modi administration seems to be wanting to get it done sooner than later. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/india-approves-pli-scheme-worth-10900-crore-in-the-food-processing-industry-fmcg-stocks-celebrate-the-news/articleshow/81777422.cms">India approves PLI scheme worth ₹10,900 crore in the food processing industry – FMCG stocks celebrate the news</a> <a href="https://www.businessinsider.in/tech/news/india-needs-chipset-manufacturers-lots-of-them-here-is-why-/articleshow/81137745.cms" data-type="tilCustomLink" target="_blank">India needs chipset manufacturers — lots of them. Here is why.</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/indian-banks-get-a-six-month-breather-to-comply-with-rbi-new-framework-for-auto-debit-payments/articleshow/81777455.cms">Indian banks get a six-month breather to comply with RBI new framework for auto-debit payments</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/indian-banks-get-a-six-month-breather-to-comply-with-rbi-new-framework-for-auto-debit-payments/articleshow/81777455.cms"></a>

You Searched For "pli scheme for semiconductor" and got 13 results

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

IANS

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

Bhakti Makwana

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

Sourabh Jain

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

IANS

Govt notifies schemes with Rs 48,000 cr incentive to boost electronics production

PTI

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

IANS

Apple vendors, Samsung, others line up with ₹11-lakh cr mobile phone mfg proposals: Prasad

PTI

Govt asks white goods industry to apply for manufacturing sops in large numbers

PTI

India mobile handset industry can reach $100bn in exports by 2025: ICEA-EY

IANS

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

Rounak Jain

PLI scheme a 'game changer' for mobile manufacturing: ICEA

IANS

Cabinet approves schemes to boost electronics mfg with Rs 48,000 cr incentives

PTI

Howzzat! A $1 billion cash reward for making semiconductor chips in India⁠ is under consideration

Sriram Iyer

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