The government is reportedly weighing targeted financial incentives to develop chipsets across 25 electronic product categories and is considering strict domestic-sourcing rules for select items such as television sets (TV) and air conditioners (AC), in a bid to ensure demand for indigenously produced chips.
The incentives are proposed under the updated design-linked incentive (DLI) scheme.
Industry executives in the semiconductor sector have reportedly indicated that future investment plans in India would depend on whether chips manufactured locally can also be sold in the domestic market. The Ministry of Electronics and Information Technology (MeitY) believes a dual approach, combining incentives with local-sourcing regulations would help locally produced chips readily find consumers.
Further, expediting the placement of Indian chips into the chipsets or boards of consumer electronic products is now a priority for the ministry as it lays the groundwork for India Semiconductor Mission 2.0.
Besides TVs and ACs, the other products under consideration for strict local-sourcing rules include energy meters, refrigerators, telecom equipment, and devices using internet of things (IoT) sensors.
