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Semiconductor policy may be unveiled before budget
By siliconindia
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Tuesday, 06 February 2007, 18:30 IST
Hyderabad: The semiconductor industry will be keenly watching the days building up to the union budget. This is precisely because the government has made known its plan of unveiling a semiconductor-cum-electronics policy before the financial outlays for the coming fiscal is announced.
Prithviraj Chavan, Minister of State in the Prime Minister's Office announced this at the Vision Summit while unveiling a report of the Indian Semiconductor Association (ISA) and Ernst and Young India. He further added that the policy has been accorded an in-principle nod by the Union Cabinet, and is being fine-tuned by a Group of Ministers drawn from IT and Finance and also the Planning Commission.
Speaking on the occasion, Chavan said that the fabless semiconductor industry in the country has made great advances but this could not have been done without the growth of related sectors including electronics industry. He added that the government felt the need for being proactive and completing the chain of the semiconductor industry right from design to manufacture by encouraging manufacturing.
To usher in a new era of enhanced development, the proposed package will cover semiconductors, LCDs, plasma panels, solar and photovoltaic cells, advanced micro and nano devices and assembly and testing operations in the semiconductor industry.
Providing some insights into the policy, the Minister said that the package would have cash incentive or direct subsidy up to a limit and have a cut-off date for seeking permission. Apart from defining a minimum threshold investment to qualify, the incentives would be over and above those of special economic zones and other sops offered by the Central and State Governments.
Lab revamp
The Government-owned Semiconductor Complex Ltd in Chandigarh would be revamped, noted Chavan, adding that in the near future, it will function as a national laboratory for use by the semiconductor industry. The lab is also being upgraded to handle modern semiconductors.
Moreover, in order that there is a steady stream of technical talent for absorption by the industry, the government is considering allowing foreign direct investment in higher education, Chavan said.