GS Paper - 3 (Information Technology)

The government is planning to come up with a semiconductor design-linked incentive policy to promote domestic manufacturing as well as attract global electronic chip companies to the country. Global majors such as Qualcomm, Intel, Mediatek, Infineon, and Texas Instruments have their research and development in India which contributes to the development of their chipsets.

What

  1. The government is deliberating on a new semiconductor design-linked incentive scheme which envisages financial and infrastructure support for Indian MSMEs and startups right through the ideate stage to production stage.
  2. As and when these startups start producing and selling chips in the market, they shall also avail additional incentives under the scheme on their net sales turnover.
  3. Minister of State for Electronics and IT Rajeev Chandrasekhar had said that the government would host a conference of semiconductor companies in November to discuss India's policy roadmap in the segment.
  4. It is a great initiative which will leverage India's strength to make an impact in the field of design of semiconductors.
  5. The semiconductor design is the main driver of revenues that electronic chip companies earn from sale of their high end components.