Treat semiconductor chip manufacturing as a strategic sector: ICEA

India Cellular & Electronics Association (ICEA) has called for treating semiconductor chip design/manufacturing as a strategic sector, enabling access to low-cost funds and establishing a dedicated capital market system for the electronics and high-tech industry.

The body, which represents Apple, Foxconn, Lava, and other Chinese handset companies, also advocated for government investment in refurbished fabs and urged it to establish mechanisms to support burgeoning semiconductor design firms and foster a skilled semiconductor workforce as essential steps towards building a self-reliant semiconductor ecosystem.

"As we navigate through a transformative era in electronics manufacturing and hi-tech technology, India stands at a pivotal juncture to redefine its role in the semiconductor value chain,” said Pankaj Mohindroo, Chairman of ICEA.

ICEA, in its report, emphasised the critical need to develop a holistic

design ecosystem encompassing the entire electronics value chain. This includes encouraging major Indian corporates and OEMs to delve into semiconductor design and core IP creation, thereby ensuring a vibrant domestic semiconductor design landscape.

It also advocated for significant governmental and policy support, recommending including mask sets in the Design-Linked Incentive (DLI) scheme. To facilitate the emergence of a strong Indian Intellectual Property Rights (IPR) framework, subsidising the cost of mask sets by up to 80% for Indian design firms is proposed.

Highlighting the acute need for skilled personnel in the semiconductor sector, ICEA called for developing industry-oriented curricula and comprehensive training programs.