The minister of State for Electronics and IT has said that India will consume semiconductors of about $70-80 billion to manufacture electronics products worth $300 billion by 2026 in line with the government’s vision. Further, Chandrasekhar mentioned that the government will achieve the target of establishing a semiconductor ecosystem in India depending upon the interest it is getting from around the globe.
The minister further mentioned that the demand for digital devices and electronics products is on the rise. The government has already announced a target of $300 billion in electronic manufacturing, with $120 billion in exports. Accordingly, the minister informed that based on $300 billion electronics (production target by 2026), the consumption will be almost $70-80 billion of semiconductors.
Notably, under the Semicon India Programme, the government has received proposals from five companies to set up the electronic chip and display manufacturing plants with an investment of Rs 1.53 trillion.
Semicon India programme entailed incentives to the tune of Rs 760 billion. As per the report, companies like Vedanta Foxconn JV, IGSS Ventures, and ISMC have submitted proposals to set up electronic chip manufacturing plants with a $13.6 billion investment. They have sought the support of $5.6 billion from the government under the Rs 760 billion programme.
In addition, Vedanta and Elest have proposed a projected investment of $6.7 billion to set up display manufacturing units — used in mobile phones, laptops, etc. They have sought the support of $2.7 billion from the government under the scheme for setting up display fabs in India.
Commenting on the approval progress, the minister stated that the applications are being processed and declined to provide an estimated timeline for their approval.
