28/12/2021 - Government Policies

KEY POINTS

·        The Union Cabinet’s decision this week to set aside Rs.76,000 crore for supporting the development of a ‘semiconductors and display manufacturing ecosystem.

·        The basic building blocks that serve as the heart and brain of all modern electronics and information and communications technology products.

·        For one, the level of fiscal support currently envisioned is minuscule when one considers the scale of investments typically required to set up manufacturing capacities in the various sub sectors of the semiconductor industry.

·        E-waste in the country has to be managed by implementing e-waste rules 2016 effectively.

·        A semiconductor fabrication facility, or fab, can cost multiples of a billion dollars to set up even on a relatively small scale and lagging by a generation or two behind the latest in technology.

·        Even granting that India’s Production Linked Incentive scheme intends to give only 50% of the cost of setting up at least two greenfield semiconductor fabs by way of fiscal support, not much of the current scheme outlay of approximately $10 billion is likely to be left to support other elements including display fabs, packaging and testing facilities, and chip design centres.

·        Chip fabs are also very thirsty units requiring millions of litres of clean water and extremely stable power supply.  

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kindly review and provide suggestions sir/mam

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