Boost Domestic Semiconductor Industry: ICEA Advocates Strategic Treatment for Chip Design and Manufacturing

ICEA recommends measures to boost India's semiconductor industry, including investments from large corporates and treating chip design as strategic. The report advocates for an exclusive market exchange for electronics, inclusion of mask sets in DLI scheme, and innovative funding approaches. It emphasizes the need to prevent dumping from China, invest in refurbished fabs, and develop a skilled workforce. ICEA sees an opportunity for India to advance into advanced semiconductor manufacturing and foster a self-reliant ecosystem.

Industry body ICEA has recommended various measures, including encouraging large Indian corporates to invest in semiconductor design and treating chip design and manufacturing as a strategic sector, to place India at the forefront of semiconductor product design and IP creation.

India Cellular and Electronics Association (ICEA), in its latest report, also recommended that India should establish an exclusive market exchange for electronics and hi-tech industry.

This would drive growth and innovation across the industry, while also creating capacities to become a global hub for electronics and semiconductor manufacturing, it said.

''India needs to be vigilant and forge a coalition to prevent dumping of higher node and memory chips from China, otherwise we risk a situation similar to a display wherein most global TFT-LCD companies have gone under,'' the ICEA report said.

The report advocates for significant governmental and policy support, recommending the inclusion of 'mask sets' (stencils used to produce a pattern on a substrate) in the Design Linked Incentive (DLI) scheme. ''Subsidising the cost of 'mask sets' by up to 80 per cent for Indian design firms is proposed as a measure to facilitate the emergence of a strong Indian Intellectual Property Rights (IPR) framework,'' ICEA said in its recommendations.

The report underlined the importance of innovative funding approaches to support the semiconductor design ecosystem. It pitched for treating semiconductor chip design/manufacturing as a 'strategic sector', thereby enabling access to low-cost funds and establishing a dedicated capital market system for the electronics and high-tech industry.

''With the global shift in semiconductor manufacturing dynamics, particularly due to US sanctions on China, ICEA sees a strategic opportunity for India to advance into sub-14 nm (nanometer) technology nodes. The report suggests that India could leverage spare capacities, like TSMC's for 7nm technologies, to accelerate its entry into advanced semiconductor manufacturing,'' the association said.

Advocating for government investment in refurbished fabs, ICEA said support to semiconductor design firms and building of a skilled semiconductor workforce will be key to fostering a self-reliant semiconductor ecosystem.

''As we navigate through a transformative era in electronics manufacturing and hi-tech, India stands at a pivotal juncture to redefine its role in the semiconductor value chain,'' Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), said at a conference.

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