The federal government has once again demonstrated its commitment by allocating up to Rs 6,903 crore in the interim budget 2024-25. This substantial increase, following last year’s allocation of Rs 3,000 crore, confirms the government’s determination to nurture semiconductor and electronics manufacturing.
The announcement is a key component of the government’s ongoing initiatives to elevate India into the ranks of countries that excel in semiconductor technology. The Rs 76,000-crore incentive package launched in December 2021 lays the foundation for this new focus. The allocated funds are now expected to play a key role in the growth of the semiconductor and display manufacturing ecosystem.
Ashok Chandak, Chairman, Indian Electronics & Semiconductor Association (IESA), praised the government’s continued support to the industry and said: “The mid-term budget 2024 marks the government’s continued support to the semiconductor and electronics industry and IESA has been a strong advocate for design-led Manufacturing, with greater added value.”
Likewise, Hitesh Garg, Vice President and Managing Director, India, NXP Semiconductors, also expressed enthusiasm for the government’s positive stance. “We are excited about Budget 2024’s major push to boost semiconductor and electronics manufacturing in India,” Garg said.
He appreciated the substantial increase in funds and the 130 per cent increase in funds to Rs 6,903 crore and stressed the government’s commitment to create an environment conducive to technological advancement.
Garg believes these strategic initiatives have not only accelerated the growth of the semiconductor industry but also positioned India as a preferred destination for global electronic system design and semiconductors. “The collaborative spirit and proposed incentives position India as a global semiconductor hub, reinforcing its commitment to cutting-edge technological advancements,” he added.
However, that boost also comes when the intersection of artificial intelligence and semiconductors receives widespread attention. An AI chip, also known as an AI accelerator, is a special semiconductor designed specifically to run AI algorithms.
These chips are optimized for tasks such as deep learning, inference and training, and offer significant performance and efficiency advantages over traditional CPUs and GPUs.
The Indian government’s future DESIGN DLI plan recognizes the critical role of artificial intelligence in the semiconductor industry. By providing funding and infrastructure support for chip design, the program can directly accelerate the development of such chips in India, which has a large number of chip designers.
All in all, from an industry perspective, the increased budgetary allocation is in line with India’s aspirations to become a significant player in global electronics manufacturing and reflects a forward-looking approach to promoting R&D.
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
