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Narendra Modi Cabinet approves Rs 76,000 crore scheme for semiconductor manufacturing

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NEW DELHI: In furtherance of the vision of Aatmanirbhar Bharat and positioning India as the global hub for Electronic System Design and Manufacturing, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the comprehensive program for the development of sustainable semiconductor and display ecosystem in the country.

The program will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design. This shall pave the way for India’s technological leadership in these areas of strategic importance and economic self-reliance.

Semiconductors and displays are the foundation of modern electronics driving the next phase of digital transformation under Industry 4.0. Semiconductors and display manufacturing is very complex and technology-intensive sector involving huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology, which require significant and sustained investments. The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.

The programme aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.

Following broad incentives have been approved for the development of semiconductors and display manufacturing ecosystem in India:

Semiconductor Fabs and Display Fabs: The Scheme for Setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to applicants who are found eligible and have the technology as well as capacity to execute such highly capital intensive and resource incentive projects. Government of India will work closely with the State Governments establish High-Tech Clusters with requisite infrastructure in terms of land, semiconductor grade water, high quality power, logistics and research ecosystem to approve applications for setting up atleasttwo greenfield Semiconductor Fabs and two Display Fabs in the country.

Semi-conductor Laboratory (SCL): Union Cabinet has also approved that Ministry of Electronics and Information Technology will take requisite steps for modernization and commercialization of Semi-conductor Laboratory (SCL). MeitY will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.

Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT Units: The Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 30% of capital expenditure to approved units. Atleast 15 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established with Government support under this scheme.

Semiconductor Design Companies: The Design Linked Incentive (DLI) Scheme shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% – 4% on net sales for five years. Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design and facilitating the growth of not less than 20 such companies which can achieve turnover of more than Rs.1500 crore in the coming five years.

India Semiconductor Mission: In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent “India Semiconductor Mission (ISM)” will be set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.

Comprehensive Fiscal Support for Semiconductors and Electronics

With the approval of the programme for development of semiconductors and display manufacturing ecosystem in India with an outlay of Rs.76,000 crore (>10 billion USD), Government of India has announced incentives for every part of supply chain including electronic components, sub-assemblies, and finished goods. Incentive support to the tune of Rs.55,392 crore (7.5 billion USD) have been approved under PLI for Larges Scale Electronics Manufacturing, PLI for IT Hardware, SPECS Scheme and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme. In addition, PLI incentives to the quantum of Rs.98,000 crore (USD 13 billion) are approved for allied sectors comprising of ACC battery, auto components, telecom & networking products, solar PV modules and white goods. In total, Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as global hub for electronics manufacturing with semiconductors as the foundational building block.

In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure. The approved program will propel innovation and build domestic capacities to ensure the digital sovereignty of India. It will also create highly skilled employment opportunities to harness the demographic dividend of the country.

Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain. The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.

 

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Nokia to showcase 5G private wireless at 2022 TISSOT UCI Track World Championships

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NEW DELHI: Nokia has announced that it has become an official partner of the 2022 TISSOT UCI Track World Championships being held near Paris in October. Nokia is working with the French Cycling Federation to deploy a 5G private wireless network solution at the Saint-Quentin-en-Yvelines National Velodrome.

The deployment will enable an immersive digital experience for fans and enhance security and safety at the event.

Nokia is already partnering with the Saint-Quentin-en-Yvelines Community on 5G projects in the 26 Ghz band at the National Velodrome. With 25,000 spectators expected over five days, the event provides a platform to showcase how 5G private wireless can meet the demands of thousands of people in an arena as they simultaneously access data and video over their devices. The low-latency and high-bandwidth capabilities of 5G will enable the arena owners and communications service providers to offer new data-driven services at similar events.

The private wireless network using mmWave for 5G will be deployed with Nokia Modular Private Wireless (MPW) solution. It will demonstrate how enterprises in France can leverage 5G mmWave to advance their digital transformation.

By harnessing the high-quality TV production and the different streams available and thanks to the deployment of new technology solutions, Nokia will contribute to enhance the viewing experience for fans in the arena and millions watching at home around the globe.

French Cycling Federation teams will benefit from enhanced video capture and real-time processing of data. Greater situational awareness and the ability to instantly share data and video will enhance maintenance and security efforts and ensure the smooth and safe running of the event. In addition, sports teams can benefit, as more wearable technology is connected, allowing them to access real-time health and performance data and video to help them better prepare for races.

Michel Callot, President of the Fédération Française de Cyclisme, said: “As the eyes of cycling fans across the globe turn to France for this high-profile event next year, we are excited to work with Nokia to showcase how 5G technology can augment the digital experience for those at the stadium and for people watching at home.”

Chris Johnson, Head of Global Enterprise business at Nokia, said: “As a worldwide leader in private wireless technology, Nokia is excited to take part in this awesome opportunity to transform the digital experience for everyone at the event. The implementation of high-speed, high-bandwidth connectivity will allow spectators to experience the event like never before.”

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STL wins Rs 170 crore deal from PGCIL

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NEW DELHI: STL, an industry-leading integrator of digital networks, announced a partnership with India’s largest power distribution company, Power Grid Corporation of India Limited (PGCIL). Through this collaboration, STL will fulfil PGCIL’s requirement for high performance, integrated network management systems across their regional communications networks. With this multi-year deal worth Rs 170 crore STL further strengthens its relationship with PGCIL.

As a part of its earlier engagements, STL has been supplying optical fibre cables and developed an IP-MPLS network for PGCIL.

PGCIL owns and operates 90% of India’s interstate and inter-regional electric power transmission network spanning 1,72,192 circuit kilometres & 72,126 km of telecom network. This gigantic transmission & telecom network has to be consistently maintained at an availability of 99% & 99.5% uptime, respectively. As networking becomes agile, these mammoth networks will require a modern approach to management and orchestration to solve challenges in the areas of silos, interoperability and security.

Leveraging its software-defined networking solution, STL will deliver a customised Unified Network Management System (UNMS) offering advanced automation, programmable configuration and actionable insights. Through this solution, PGCIL will get a consolidated, centralised view of regional networks and will be able to optimise O&M, reduce system outages at the national level and generate performance analytics for the Central Electricity Authority (CEA).

Commenting on this collaboration, Praveen Cherian, CEO, Global Business Services, STL said: “We are delighted to form an association with PGCIL for creating a customised UNMS for managing their massive-scale utility networks. Through our solution, we will provide a consolidated infrastructure with centralised controls for their inter-regional networks. The network management system, with integrated analytics, will bring in efficiency and effectiveness setting superior standards in networks operations management.”

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India releases 2nd volume of vision document on electronics manufacturing

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NEW DELHI: Ministry of Electronics and Information Technology, in association with ICEA, released a 5-year roadmap and Vision Document for the electronics sector today, titled “$300 billion Sustainable Electronics Manufacturing & Exports by 2026.” This roadmap is the second volume of a two-part Vision Document – the first of which titled “Increasing India’s Electronics Exports and Share in GVCs” was released in November 2021.

This report provides a year-wise break-up and production projections for the various products that will lead India’s transformation into a US$300 billion electronics manufacturing powerhouse, from the current US$75 billion.

Amongst the key products that are expected to lead India’s growth in electronics manufacturing include Mobile Phones, IT Hardware (laptops, tablets), Consumer electronics (TV and audio), Industrial electronics, Auto electronics, Electronic components, LED Lighting, Strategic electronics, PCBA, Wearables and hearables, and Telecom equipment (see chart). Mobile manufacturing that is expected to cross US$100 billion annual production – up from the current US$30 billion – is expected to constitute nearly 40% of this ambitious growth.

Ashwini Vaishnaw, Union Minister of Electronics & Information Technology, congratulated and lauded the entire team of Ministry of Electronics & Information Technology for their efforts in bringing out the documents and policy framework items at this remarkable speed.

During the event,  Vaishnaw also addressed some points raised by industry leaders during the recent interaction with him. Addressing industry’s apprehensions over the issue of dual regulations in mobile manufacturing, the Minister clarified that telecom department is not going to enter into mobile manufacturing and the mobile manufacturing regulatory regime will remain same.

Speaking on the occasion, Rajeev Chandrasekhar, Minister of State, Electronics & IT and Skill Development & Entrepreneurship, said that Ministry is focusing on broadening and deepening of electronics industry in India in line with Prime Minister’s recent statement at World Economic Forum, where he said that India is emerging as a reliable and trusted partner in value chains.

Talking about the objective of the volume-2 of the vision document releases today,Chandrasekhar, said, “New markets, new customers and being a player in Global Value Chain (GVC) is the goal and mission of the 2nd phase. This volume along with the 1st Volume on electronics manufacturing, represent an excellent example of goal setting, detailed strategy making after hours of deep engagement between government and industry. He further added that the numbers in the 2nd Volume of vision document confirms that there is a real opportunity in electronics sector, driven by 2 factors: growth of digital consumption and growth and diversification of global value chains.

The domestic market is expected to increase from US$65 billion to US$180 billion over the next 5 years. This will make electronics amongst India’s 2-3 top ranking exports by 2026. Of the US$300 billion, exports are expected to increase from the projected US$15 billion in 2021-22 to US$120 billion by 2026.

The five-part strategy to reach the US$300 billion goal, based on an “all of the government” approach, sharply focuses on broadening and deepening electronics manufacturing in India. This, by building competitiveness and scale by attracting global electronics manufacturers/brands, shifting and developing sub-assemblies and component ecosystem, building a design ecosystem, nurturing Indian champions and steadily removing cost disabilities faced by India.

The US$300 billion electronics manufacturing comes on the back of US$10 billion PLI Scheme announced by the government to propel forward the Semiconductor and Display ecosystem. The government has committed nearly US$17 billion over the next 6 years across four PLI Schemes – Semiconductor and Design, Smartphones, IT Hardware and Components. The Vision Document makes a strong recommendation on the need to focus on aggregate domestic value addition in the electronics sector, as India transforms from its current state to one that is gearing to compete with the likes of China and Vietnam. It also details the importance of the key role Indian champions will play in addition to global companies – both of whom are already part of the PLI Schemes.

The report seeks a competitive tariff structure on electronic components and removal of all regulatory uncertainty to put India on the path to US$300 billion electronics manufacturing. The report recommends a “winner takes all” strategy backed by economies of scale and global competitiveness, new and revised incentive schemes for some sectors, and the need to address issues of sustainability and ease of doing business.

Chart: Roadmap to manufacture US$300 billion Electronic Products

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