Semiconductor Policy Announced

Bangalore, Karnataka, India

The Semiconductor industry welcomed the announcement of the Semiconductor Policy earlier on Thursday. The policy has a special incentive package to attract investments for setting up semiconductor fabrication and other micro and nano technology manufacturing industries. This is further to the in-principle approval given by the Cabinet last month.

Ms. Poornima Shenoy, President, India Semiconductor Association ISA said that, "This is extremely positive. The policy will provide an impetus for the further growth of the sector, the electronics industry and the overall ecosystem. The domestic market for electronics goods is expected to reach USD 363 billion by 2015 and the domestic demand for semiconductors alone will be USD 36B. This policy will go a long way in making India as an attractive destination for global semiconductor and hi-tech companies plus investors.

We have a burgeoning market demand in the communication industry, automotives, security cards, defense, etc and this will help in meeting the needs of the market. This is a good beginning to the New Year and ISA would like to applaud the contribution of all the concerned authorities in coming out with the Semiconductor Policy."

According to Mr. Rajendra Kumar Khare Chairman ISA "Cultivation of a robust and scalable semiconductor industry is the key to making the Great Electron Revolution happen within the country. Semiconductors form the heart of hardware and soul of software in any electronic system. It is clear that electronics manufacturing can succeed and be globally competitive only if there is an accompanying semiconductor manufacturing eco-system and vice versa. ISA has been working with the various departments in Government to make this policy happen and we are delighted to see our efforts bear fruit".

Interpretation of the Semicon Policy

Based on the information available:

The incentives will be for the manufacturer of all semiconductors, displays including Liquid Crystal Displays LCDs, Organic Light Emitting Diodes OLED, Plasma Display Panels PDP, and any other emerging displays, storage devices, solar cells; photo voltaics; other advanced micro and nano technology products; assembly and test.

A key benefit is the grant of the SEZ status. This way the government has provided both pre-operative & postoperative benefits to the industry, which is important for the development of the ecosystem too. The overall incentives of 20% or 25% of the project costs are however a little lesser than what other countries are offering to the Semiconductor units.

The Government has provided two options to the Project. Units would ideally choose the SEZ option as the eco-system for chip manufacturing can be developed chiefly with a SEZ status to the developer of the ecosystem too.

Other details are awaited including the eligibility conditions to avail of these benefits under the policy.

About India Semiconductor Association

India Semiconductor Association ISA is the only body representing the Indian semiconductor industry. ISA was established in 2004 and is headquartered in Bangalore, India. ISA has nearly 130 members from the semiconductor and electronics industry across India besides key players in the ecosystem like venture capitalists and legal firms. ISA is committed towards building global awareness for the Indian semiconductor and electronics industry and creating productive interaction between the various stakeholders. This includes product and services companies, government, academia, venture capitalists and industry bodies. By fostering active collaboration between the industry and universities, ISA seeks to expand the existing excellent talent pool in India. It has strategic partnerships with global industry bodies.

For more details on ISA, please visit www.isaonline.org

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K Sridhar Kumar, Blue Lotus Communications Pvt. Ltd., + 91 80 4152 6656 sridhar@bluelotuspr.com

Source: India Semiconductor Association (ISA) (Business Wire India)

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