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New Delhi: The government is likely to review the production-linked incentive program (PLI) for electronic components and computer hardware to make it more attractive, the minister of state for electronics and hardware said on Friday. Computer Science Rajeev Chandrasekhar. He also said that there is a tremendous window of opportunity for India in the semiconductor ecosystem and the government is working on it strategically.

“We proactively review LIPs quarterly, not with the intention of improving them, but to measure effectiveness, how can we develop it further. For example, PLI for components and computer hardware, I totally agree that we need to reexamine it in detail and see what will make it work, ”Chandrasekhar said at the Electronics Summit held. by CII.

He was responding to the suggestion of the president of electronics manufacturing company Dixon Technologies, Sunil Vachani, that small and medium-sized electronics manufacturers should be encouraged under the PLI program.

The Information Technology Manufacturers Association (MAIT) had said the government should allocate Rs 20,000 crore under the PLI program for computer hardware to boost the manufacturing of personal computers, tablets and of servers in the country.

The government has allocated Rs 7,325 crore as an incentive under the computer hardware program.

The minister also said that there will be a series of meetings between the Ministry of Electronics and Information Technology (MeitY) and industry by early December to discuss the problems facing the industry. ‘electronic.

Chandrasekhar said that there is a tremendous window of opportunity for India in the field of semiconductors.

“We have tried this many times in the past. There is a Prime Minister who has tremendous clarity and understanding of the industry, understands the centrality and criticality of the semiconductor ecosystem.

“I have no doubt that we are on the right track. We have a good strategy and you will hear very soon that the country is embarking on this path with absolute strategic clarity and strategy,” the minister said.

Chip company Infineon Technologies chief executive Vinay Shenoy said there is huge demand for electronics, and countries and businesses around the world are looking for alternative destinations for investment.

“Various semiconductor companies have committed over $ 100 billion in investments over the next 5 years. This, combined with the geopolitical uncertainties and supply chain disruptions that are causing companies and countries to overhaul, we have an excellent role to play due to the diversity of strengths we bring, ”said Shenoy.

He noted that India brings in high-tech semiconductor design capabilities which constitute 40 percent of the total value added in a semiconductor or microchip.

“If you push for manufacturing, which is the next 30 percent, we can own 70 percent of the total added value in a typical semiconductor.

“We should strike when the iron is hot and I don’t think the iron can get hotter than that. We have a 2-3 year window to conclude on this decision. Whether it is big business. Captive manufacturing or even foundries, establishing semiconductor manufacturing in India is very critical, ”Shenoy said.

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Richard V. Johnson