Chip design firms call for govt support

Tags: Knowledge
India’s design capability is at par with global standards. However, the industry ecosystem is very sparse. Without government support, the semiconductor industry will not get to the next level, according to Jaswinder Ahuja, MD, Cadence Design Systems.

Some of the emerging economies, such as Korea, which have come out practically from nowhere in the past 30-40 years, and have become important players on the world stage, have all had significant levels of government intervention, he pointed out.

“In all those countries, government has viewed electronics as a priority sector and has created both a favourable environment through policy and also made direct investment. The growth opportunity for electronic systems design and manufacturing (ESDM) in India is pegged at $400 billion by 2020. A lot of things are needed from the government side to enable such a growth for the industry,” Ahuja said.

“If you aggregate the total amount of imports, in the near future, semiconductor imports will overtake oil imports. Government should realise this is the sector of strategic importance to India, rather than doing something for the industry,” he further said.

Some countries have put a clause in the policy that the procurement, be it for defence or other purposes, if technically qualified and are able to offer at the same price point, then 30 per cent purchase will be made from the domestic companies. There should be a similar policy in India, Ahuja insisted. “Semiconductor industry is an industry of scale. Global players are able to make it at lower price points because of scale,” he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The government might not get the timing right for its massive share sale plan

    A common thread binding the BJP’s first budget with the last three UPA budgets is the aggressive disinvestments targets set to mop up additional rev

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Welfare must be humanitarian not political

We are a very political people. We politicise and corrupt ...

Purnendu Ghosh

How to distinguish a need from a want?

The day when the annual budget is announced is one ...

Shona Adhikari

Decades apart, yet a common ground in fine art

Today’s column is about two artists born many decades apart, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture