The Ministry of Electronics and Information Technology (Meity) is ready to allocate over Rs 35,000 crore to the proposed production-linked incentive (PLI) scheme for electronic components, in a bid to transform India into a global hub for sub-assemblies, a senior official disclosed.
Sub-assemblies, comprising various components and parts, are integral to creating complete products. Under this upcoming scheme, the identified sub-assemblies include camera modules (featuring components such as connectors, sensors, lenses, golden wires, and glue), display assemblies, mechanical parts (resins, mesh, adhesive, film, and gasket), battery packs, battery chargers, and vibrators.
According to estimates, scaling up the production of these sub-assemblies in India could increase value addition in products like mobile phones by 25-28 per cent, while also boosting electronics exports. However, the required investments for sub-assemblies range from Rs 500 crore to over Rs 1,000 crore, depending on the scale of production.
Core components, such as the lens for camera modules, necessitate even larger investments due to the extensive global capacities already established in various markets.
“The government’s objective with the component PLI is to position India as a global hub for sub-assembly exports,” the Meity official said.
“We have identified the sub-assemblies to incentivise. We have looked at global market potential, and possible companies that would be interested.”
Regarding the semi-conductor road map, the official mentioned that Tata Electronics’ technology partner, PSMC, will provide the tech for manufacturing 28 nm wafers. Efforts are underway to advance technology for lower nodes, with over 115 highly-qualified engineers already recruited to build an indigenous technology team.
“We are witnessing a reverse brain drain, with many Indians working in this field returning from East Asia and the US,” the official noted. The Tatas have been conducting roadshows in countries like Taiwan and the US to attract talent back home.
However, within Meity, opinions diverge on the future trajectory for semiconductors. “One perspective is to consolidate and let the approved projects take off before greenlighting more fab and ATMP projects. The other view advocates for approving more projects to capitalise on the interest generated about semiconductors in India. If we follow the latter, that would necessitate allocating additional funds. We are currently deliberating on this issue,” the official explained.
On the regulation of artificial intelligence (AI), the Meity official highlighted two possible approaches: One, to regulate AI through the proposed Digital India Bill, which has already been drafted. The alternative is to enact a specific law for AI. “The industry wants a separate Act to regulate AI as it thinks it is very complex and needs specific action. We have to take a final call on this,” he added.
First Published: Jul 20 2024 | 12:09 AM IST
