24th January 2024
Wednesday

News centers upon:
Design link incentive scheme on Indias semiconductor strategy and it's benefits and demerits.

Covid Era created disruption of supply chains globally and thereby semiconductor production as well. US and UK planned introduced their semiconductor production scheme. India introduced Design Link Incentive Scheme.

Targets of the scheme:
1. Support to 100 startups on semiconductor production and supply.
2. To be a global hub in semiconductor distribution by exporting them outside.

Issues associated:
1. Investment issues
2. Laboratory needs were not met
3. Time consuming
4. Area
5. Water and vaccum requirements
6. Need of highly skilled workforce.
7. Results of semiconductor research and development studies are time consuming, takes at least 10 years.

Challenges on execution:
1. Only 7 startups started by now.
2. The benefits given are used by existing startups also.
3. We assigned the task on centre for development of advanced computing. They itself is a semiconductor manufacturer. So there arises a conflict of interest.
4. More than 50% of the requisite capital can't be raised via Foreign Direct Investment.
5. To maintain the domestic status for 3 years is mandatory.

Three major goals of Indias semiconductor strategy:
1. To reduce dependence on semiconductor imports,especially from China.
2. To build a supply chain resilience by integrating into semiconductor global value chain (GVC).
3. To double down on Indias comparative advantage.