Rs 76,000-cr chip manufacturing package will put us in big league: Minister | India News – Times of India
NEW DELHI: Ashwini Vaishnaw had his task cut out when he took charge of the telecom and IT ministry. As he juggled the two crucial ministries, while also handling the Railways portfolio, the minister had more than one area to set right.
While he managed to ensure a bailout package for the beleaguered telecom industry and bridged the trust deficit with social media giants, one of the key unfinished agendas – of getting semiconductor manufacturing into the country – still haunted the government as electronics manufacturing touched $75 billion with imported chips.
Earlier attempts to get in fab manufacturing had failed, and there was a need to draft a lucrative incentive package to get top companies to commit to India.
With facilitating passage of the mega Rs 76,000-crore incentive package by the Cabinet, Vaishnaw has now crossed a major milestone, which is likely to give a strong impetus to electronics manufacturing in the country.
“This is truly a historic decision, and one that puts India in the league of strong manufacturing nations. The whole world is watching us as we take giant steps to get semiconductor manufacturing into India,” Vaishnaw told TOI, while emphasising that expected investment inflow into the country on the back of the decision is likely to be to the tune of Rs 1.7 lakh crore over three to four years.
The minister said he started the day with prayers. “I prayed to the Lord in the morning that if I have got this opportunity to work for the country, there is no better way to return the favour. Me and my team had been working tirelessly on this (semiconductor) project for months now, and we expect the first set of announcements – regarding compound semiconductor manufacturing that is used in automobiles, power, LEDs and telecom equipment – to be made in the next three-four months. Work will begin as early as that.”
The bigger fab factories (two for semiconductors and two for display) – which will entail heavy investments ranging between Rs 30,000 crore and Rs 50,000 crore – will come up over two-four years, the minister said, and a design ecosystem will be developed “in parallel”.
The Cabinet decision also took note of the pressing need to develop the requisite talent in the country to cater to the needs of semiconductor manufacturing. “Development of talent and human capital was seen as an important ingredient and thus the Cabinet decision also entailed developing a pool of 85,000 highly talented engineers. As many as 60 institutes will join hands here, that will include all the IITs and best of the NITs.”
The government expects a total of 100 units to come up as part of the semiconductor ecosystem and the manpower is being developed to cater to this industry. “This would be for compound semiconductor, design, packaging and bigger fabs.”
While he managed to ensure a bailout package for the beleaguered telecom industry and bridged the trust deficit with social media giants, one of the key unfinished agendas – of getting semiconductor manufacturing into the country – still haunted the government as electronics manufacturing touched $75 billion with imported chips.
Earlier attempts to get in fab manufacturing had failed, and there was a need to draft a lucrative incentive package to get top companies to commit to India.
With facilitating passage of the mega Rs 76,000-crore incentive package by the Cabinet, Vaishnaw has now crossed a major milestone, which is likely to give a strong impetus to electronics manufacturing in the country.
“This is truly a historic decision, and one that puts India in the league of strong manufacturing nations. The whole world is watching us as we take giant steps to get semiconductor manufacturing into India,” Vaishnaw told TOI, while emphasising that expected investment inflow into the country on the back of the decision is likely to be to the tune of Rs 1.7 lakh crore over three to four years.
The minister said he started the day with prayers. “I prayed to the Lord in the morning that if I have got this opportunity to work for the country, there is no better way to return the favour. Me and my team had been working tirelessly on this (semiconductor) project for months now, and we expect the first set of announcements – regarding compound semiconductor manufacturing that is used in automobiles, power, LEDs and telecom equipment – to be made in the next three-four months. Work will begin as early as that.”
The bigger fab factories (two for semiconductors and two for display) – which will entail heavy investments ranging between Rs 30,000 crore and Rs 50,000 crore – will come up over two-four years, the minister said, and a design ecosystem will be developed “in parallel”.
The Cabinet decision also took note of the pressing need to develop the requisite talent in the country to cater to the needs of semiconductor manufacturing. “Development of talent and human capital was seen as an important ingredient and thus the Cabinet decision also entailed developing a pool of 85,000 highly talented engineers. As many as 60 institutes will join hands here, that will include all the IITs and best of the NITs.”
The government expects a total of 100 units to come up as part of the semiconductor ecosystem and the manpower is being developed to cater to this industry. “This would be for compound semiconductor, design, packaging and bigger fabs.”
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