With the Covid-19 pandemic driving up the demand for electronic devices, the electronics and Semiconductor Industry in the country anticipates the outlook to remain bright in the current financial year. With the PLI (Production Linked Incentive) scheme providing customised incentives for semiconductor players, a big boost is expected for chip manufacturing and electronic component and equipment manufacturing in the country.
The Indian Electronics and Semiconductor Association (IESA) expects a huge growth in the financial year as the demand for electronics devices and digital services has gone up since the onset of the pandemic. After initial hiccups last year due to the pandemic, the industry saw a spurt in demand because of the enhanced interest in devices for work and entertainment. “The outlook is bright for 2021-22 as the requirement for electronics is not going to come down,” Rajeev Khushu, Chairman of IESA, told BusinessLine.The semiconductor industry is at an interesting phase globally. “Several countries have announced policies to boost the industry in their respective countries. . “We have now many countries competing with us. The biggest challenge we are facing is fierce competition from the US, Europe and China,” he said.
Khushu said the PLI scheme could help evolve an electronics manufacturing ecosystem in the country. “We have become the second-biggest mobile manufacturer in the world. We can repeat this success in the manufacturing of servers, tablets and colour TVs. The PLI scheme is going to drive this space,” he said. He said the arrival of a global player in the Assembly Test Mark and Pack (ATMP) operations would go a long way in developing an electronics manufacturing ecosystem in the country.“This space provides three times more jobs compared to the chip-fabrication space. Attracting the manpower-intensive ATMP players will be the logical step for India,” he said.
