‘Rs 76,000 crore chip package to reinvent Indian brands’ – Times of India

Bengaluru: There was a time when computer meant HCL, Wipro, zenith, TV meant BPL, Onida, Weston, Dynora, Beltec. in mobile, while Indian brands prefer Micromax, Carbon And lava were not impressive, they had a substantial presence.
Many of these brands no longer exist. If they do, some buy them. “We are a colony of China,” said HCL co-founder and former chairman Ajay Choudhary. China’s unprecedented progress in electronics manufacturing, and that of Taiwan and South Korea in semiconductors, and the absence of any serious effort by India to match it, led to the destruction of Indian brands by people in these countries.
The government on Wednesday announced a massive Rs 76,000-crore incentive scheme for semiconductors – on top of previous production-linked incentives for electronics – has raised hopes in the Indian electronics and semiconductor space. “This is what I have been looking forward to since 2009. Now we can recreate Indian electronics with Indian brands,” Choudhary said.
IT industry body Nasscom said, over the next six years, “this program will lay the foundation for a new era in electronics manufacturing and will be an important pillar of the government’s Atmanirbhar Bharat (self-reliant) vision”.
Rajen Vagadia, president of India at US semiconductor major Qualcomm, said the program “has an overall long-term vision and includes several key aspects beyond manufacturing, such as increasing the pool of skilled engineering talent in India through Chips to Startups (C2S)”. Planning and supporting design firms and startups through the Design-Linked Incentive (DLI) scheme, which will further promote local innovation and IPR within the Indian ecosystem.
Semiconductors are at the core of electronics. Global equipment manufacturers in the US, China and South Korea usually source semiconductor chips designed in their own countries. Even when they manufacture their final products in India, the chips are imported. Domestic Industry believes that it is important to design chips and manufacture them locally in order to create a vibrant local home electronics industry. This is also the area where the highest value addition takes place.
“The most important part of the policy is the impetus for design. We have world-class designers. HCL alone has 5,000-10,000 (chip design) engineers, but they are all designing for the world now,” Choudhary said.

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