Amend semiconductor policy: Task Force

NEW DELHI, INDIA: The Task Force set up by the Government of India in August 2009 to suggest measures to stimulate the growth of IT, ITES and Electronics Hardware Manufacturing Industry, which submitted its report today, suggested to make a few amendments in the existing semiconductor policy.

“The threshold limit for certain categories of ecosystem units such as ATMPs, optical LEDs, storage devices, LCD, FPD, photovoltaics, fuel cells, micro- and nanotechnology products (as defined in the Special Incentive Package Scheme), or SIPS (Special Incentive packages), needs to be re-visited, as these units may not require large investments of $500 million,” said Vinnie Mehta, member-secretary of the Force.

“Lower threshold limits of $100 million for the incentives available under the policy are expected to generate interest for such categories of ecosystem units that have not been seen so far,” he said.

The above areas required for wafer fab form a critical part in the high-tech manufacturing value chain. The report suggests that manufacturing infrastructure located in high-tech areas of the country can also serve as a pull factor to set up wafer fabs.

“Countries such as Vietnam, China, South Korea, Singapore, and Malaysia are well on their way. In addition, the government should identify and incentivize anchor investors in areas such as ATMP, storage, LCD and LED,” added Mehta.

Association has been making recommendations repeatedly but without seeing timely action on those recommendation. This time the Ministry has again promised to deliver on the recommendation made by Task Force and is open for take up any further recommendation that associations will make in addition to this report.

“We are always open for recommendations. This report is an attempt to take collective recommendation of industry,” said R Chandrashekhar, Secretary, Department of IT.

Associations did not gave their reaction at the time of release of this report as they were yet to go through it and check if report had been as per their expectation.