IEEMA welcomed the positive step by the Union Cabinet to clear the Production Linked Incentive (PLI) Scheme for Semiconductors yesterday.
“This is a huge positive step for the Indian Electrical & Electronics industry. I believe this will accelerate our indigenization efforts and enable global competitiveness of our industry to ramp-up exports of finished products”, said Mr Vipul Ray, President, Indian Electrical & Electronics Manufacturer’s Association (IEEMA). He hailed it as one of the most significant moves towards realizing the vision of AatmNirbhar Bharat; one which has come at an opportune time to tackle the global shortage of Semiconductors. “It should help streamline the disrupted global supply chain and help mitigate the cyber security risks”, he added.
“Semiconductors are widely used in manufacturing of many electrical equipment, viz: Smart Energy Meters, Control & Automation products, Testing & Measurement Instruments and switching products, to name a few. Electrical and allied industry will be hugely benefitted by smooth & competitive supply of Semiconductors within the country once FAB facilities are established. This will also enhance our export competitiveness” stated Vipul Ray.
Manufacturing processes of Semiconductors require sophisticated equipment demanding huge investments. The proposed incentives worth Rs 76,000 crore, over the next six years and the provision for 25 percent incentives on capital expenditure for establishing unit of Compound Semiconductor Wafer Fabrication (FAB), assembly, testing, and packaging facility in the country will encourage the manufacturing industry, apart from bringing investments and employment in the country and savings of foreign exchange.