Global AI Conclave: Component PLI on the horizon, US semiconductor players showing interest, says MeitY secretary S Krishnan

MeitY secretary S Krishnan in conversation with CNBC-TV18's S Krishnan at the Global AI Conclave event in Bengaluru on November 22

India’s ambitions to deepen its electronics value chain are set to receive a significant boost, with a Production-Linked Incentive (PLI) scheme for components expected to roll out soon, and with various US-based companies in the semiconductor ecosystem expressing interest to expand in the country.

According to S Krishnan, secretary, Ministry of Electronics and IT (MeitY), who was speaking at the CNBC-TV18 and Moneycontrol Global AI Conclave, this move aligns with the government's larger goal of strengthening domestic manufacturing and reducing reliance on imports.

“We believe the value chain has to be deepened, which is why we are working on the component scheme. It will be out shortly, and we are trying to move as quickly as possible,” Krishnan said at a panel titled Inside India's AI Mission.

This development comes on the heels of the successful PLI schemes for mobile phones and IT hardware. While the mobile PLI helped India transition from importing 75 percent of its mobile phones in 2014-15 to now manufacturing 99.2 percent domestically and even exporting devices, the IT hardware PLI includes a key provision for progressively indigenising the value chain and increasing domestic value addition, Krishnan informed.

“The PLI for IT hardware has already taken off. Unlike the mobile phone PLI, there is a clear requirement for domestic value addition here, and companies have assured us they will achieve it,” Krishnan added.

US semiconductor ecosystem looks to India

The push for deeper value chains extends beyond domestic efforts, as global interest in India’s hardware story grows.

Krishnan highlighted the momentum sparked by the India Semiconductor Mission, with the likes of Micron leading the charge in semiconductor manufacturing and several other US-based companies in the broader semiconductor ecosystem looking to expand their footprint in India.

Krishnan said that India is witnessing a significant psychological shift in trust and collaboration. "The CEOs who attended the India Semicon event have made it clear—they do not want to miss out on the India story,” Krishnan said.

The synergy between the two nations, he noted, has opened up opportunities for India to become a vital player in the global semiconductor supply chain.

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