The Union government has once again showcased its commitment by allocating a staggering Rs 6,903 crore in the Interim Budget for 2024-25. This significant boost follows the allocation of Rs 3,000 crore in the previous year, affirming the government’s determination to foster the semiconductor and electronics manufacturing sector.
The declaration is a key component of the government’s sustained initiatives to elevate India into the ranks of nations demonstrating excellence in semiconductor technology. A Rs 76,000 crore incentive scheme, introduced in December 2021, laid the foundation for this renewed focus. Now, the allocated funds are expected to play a pivotal role in the development of semiconductor and display manufacturing ecosystems.
Ashok Chandak, president of the India Electronics & Semiconductor Association (IESA), lauded the government’s persistent support for the sector, and said: “The 2024 Interim budget marks continued support of the government for the semiconductor and electronics sector and IESA has been strongly advocating for Design-led Manufacturing with greater value addition.”
Similarly, Hitesh Garg, vice-president and India managing director at NXP Semiconductors, expressed his enthusiasm for the government’s proactive stance. “We’re thrilled about Budget 2024 giving a strong push to the semiconductor and electronics manufacturing sector in India,” said Garg.
He commended the substantial boost in funding and the 130 per cent rise to Rs 6,903 crore, emphasising the government’s commitment to creating an environment conducive to technological progress.
Garg sees these strategic moves as not only accelerating the growth of the semiconductor industry but also positioning India as a preferred destination for electronics system design and semiconductors globally. “The collaborative spirit and proposed incentives position India as a global semiconductor hub, solidifying its commitment to cutting-edge technological advancements,” he added.
However, this boost also comes when the intersection of artificial intelligence and semiconductors is receiving a lot of attention. AI chip, also known as an AI accelerator, is a specialised type of semiconductor designed specifically for running AI algorithms.
These chips are optimised for tasks like deep learning, inference, and training, offering significant performance and efficiency advantages over traditional CPUs and GPUs.
The Indian government’s futureDESIGN DLI Scheme recognises the crucial role of AI in the semiconductor industry. By providing financial and infrastructure support for chip design, the scheme can directly accelerate the development of such chips in India, which is home to a large number of chip designers.
All over, as per the industry, the increased budgetary allocation aligns with India’s aspirations to emerge as a prominent player in the global electronics manufacturing landscape, reflecting a forward-looking approach to fostering research and development.
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