AI Alliance NCR: New semiconductor package may look at tackling India’s need for materials, gases, minerals

With only Rs 5,000 crore remaining in the government’s semiconductor package, the Centre is considering launching a new programme to address critical issues in India’s semiconductor ecosystem such as the need for materials and gases.

Speaking at the Moneycontrol and CNBC-TV18 AI Alliance NCR Chapter in Gurugram on May 17, IT Ministry secretary S Krishnan said, “We have about Rs 5,000 crore left in the semiconductor package, which means we need to develop a new programme.”

“Once the Finance Ministry is on board, we have to see what else strategically we need, the materials and critical minerals, gases. A number of those issues have to be addressed,” he said during a fireside chat at the event.

He also noted that the semiconductor mission offers the most generous programme compared to any other in the world.

On AI regulation

Krishnan discussed a variety of topics, including the Rs 10,000 crore IndiaAI mission, which aims to provide GPU infrastructure to startups and academia, as well as AI regulation.

On AI regulation, Krishnan said, “AI regulation is evolving. The fact that there is a hiatus because of the electoral process is a good thing as it gives us more time to understand what shape it should take.”

“MeitY is getting inputs from academia, industry, legal experts and other stakeholders on what shape it should take. We are even talking to peers in other jurisdictions,” he added.

The IT ministry is expected to introduce regulations aimed at overhauling India's technology policy landscape. Some of these include the Digital India Bill, the rules of the Digital Personal Data Protection Act, amendments to the IT Rules, and more.

Mobile phone PLI

Responding to a question regarding the value addition that the mobile phone PLI has brought for the country, Krishnan said, “The PLI in mobile phones is about bringing in large scale manufacturing to the country. I agree that the value addition is say 15-18 percent. But all of these electronics form part of a global value chain. Not even China has more than 40-50 percent. So we are not doing too badly.”

“If mobile manufacturing has to sustain in India, the component ecosystem needs to be built up. And many investments are happening in that regard. As that happens, the value addition will increase,” he added.