Chip Policy expected to Bring Big Cash to Indian Semiconductor Industry

Released on = April 20, 2007, 3:21 am

Press Release Author = Shushmul Maheshwari

Industry = Semiconductors

Press Release Summary = The long-awaited semiconductor manufacturing policy of India
had been proclaimed on February 22, 2007, thereby making way for the nation to carve
its niche in the global semiconductor industry.

Press Release Body = Inspite of less-than estimated financial concessions for
semiconductor production operations situated in Special Economic Zones, Indian
industry is optimistic about the semiconductor policy by the government saying it
will result in an instant investment of around $10 Billion.

Called as the Special Incentive Package Scheme, the program is focused on pulling
capital for establishing semiconductor plants and industries for manufacturing other

Semiconductor firms looking for incentives, that will be 20% of the capital expended
during the initial ten years, will have to infuse a minimal amount of $550 Million
in SEZs.

Raj Khera, Chairman, Indian Semiconductor Association, said in a statement reported
on February 23, 2007 by Indiatimes Infotech, “Although the 25% fiscal
incentive anticipated by the industry even in case of SEZs has not materialised, but
our mood is upbeat. It will galvanise the entire eco-system including inputs like
chemicals, and wafer processing. We expect immediate investment commitment of about
$10 billion, and the resultant boom in electronics manufacturing could see new
players taking this figure to $50 billion in the next 10 years”.

The proclamation will bring huge investments to Indian semiconductor industry and
will also form a large employment pool for hardware industry. As per the estimates,
it could form nine million job vacancies in the next 10 years in India. By 2015,
India is projected to house a $360 Billion worth of electronics industry with an
approximated chip consumption of about $35 to $40 Billion, thereby making it a
luring market for global players to consider establishing their fab units in India.

According to the RNCOS report “Semiconductor Industry (2007-2010)”,
India is coming as an important country for semiconductor industry. Not only the
semiconductor consumption but also the semiconductor manufacturing capacity of the
country is growing high. In 2006, the Indian industry was ruled by embedded software
and design service. However, inspite of harboring design and development centers for
almost all the chief fabless companies and IDMs, India has yet to establish a
semiconductor manufacturing facility meeting international standards of excellence.

The market research report also discusses the other major markets of the world in
detail with their past and current performance, semiconductor equipment industry,
market by product and end-application, and market segmentation. The report also
analyzes the success factors, opportunities, challenges, and trend analysis of the
global semiconductor industry with a rational analysis on the future outlook of the
market supplemented with statistical data.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

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Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92

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