BANGALORE: Hindustan Semiconductor Manufacturing (HSMC), a start-up enterprise that intends to start high-tech manufacturing in India, is one among the group of companies that were waiting so long for India’s semiconductor policy to be announced.

Most companies were keen to get some clarity on the level of incentives that the Government would provide.

The policy allows incentives in the form of an overall 20-25 per cent of the project cost. “This is less than what other countries like Israel and Germany offer, but we are happy with 20 per cent incentives,” said Dr Devendra Verma, managing partner, HSMC.

He said the company expects to make an announcement on its plans to set up at least five fabs in India in another two weeks. HSMC, is backed by a few Silicon Valley VCs and entrepreneurs, and is partnering with one of the world’s top five semiconductor manufacturing partners to get its operations off the ground.

Verma said that HSMC plans to get into manufacture of mobile phone chips, SIM cards and smart cards in India.

Ajay Jalan, CFO, Sandalwood Partners, a company that is backing the SemIndia consortium, similarly expressed happiness over the policy.

Rajendra Kumar Khare, chairman, ISA, said that the incentives offered in the policy have been slightly diluted compared to ISA’s recommendations. But he still feels it is enough to woo investors. “It is at a threshold that can welcome investors. The Government can find ways to sweeten the incentives in terms of additional support such as viability gap to support infrastructure.”

Khare said “early bird investors” could get a better foothold in the manufacturing space by making use of the policy benefits and that the rewards would be worth it. Hailing the policy, he said, “It marks India’s entry into the big boys’league.”

He also noted the extraordinary role extended by the Government. “There has not been a single instance before where a Government has participated in a sector like it is doing now.”

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