Mission Semicon: Following in Gujarat’s Footsteps, Odisha & Assam Approve Industry-focused Chip Policies – News18

Gujarat was the primary state to provide you with a devoted semiconductor coverage in 2022 and has been an ideal vacation spot for the {industry}. Its coverage presents a spread of incentives to draw semiconductor manufacturing firms, together with capital and land subsidies in addition to tax breaks. Now, following the state’s footsteps, Odisha and Assam have provide you with their very own insurance policies to start their chip journey.

Apart from geographical benefit, steady political ambiance, expert workforce and availability of a well-developed infrastructure, {industry} insiders praised Gujarat for its industry-focused semiconductor coverage. For instance, US chip maker Micron Technology could have an meeting and check facility within the state.

On the sidelines of ‘Semicon India 2023’, which came about final month, the India Electronic and Semiconductor Association (IESA) signed agreements with the Uttar Pradesh authorities by way of the UP Electronics Corporation Ltd (UPLC). A multi-stakeholder engagement technique, this collaboration will search to curate semiconductor and fabless coverage for the state.

The emphasis might be on creating {hardware} centres of excellence, which is able to assist to spice up the semiconductor ecosystem in Uttar Pradesh. Additionally, it was determined that ability improvement efforts will take the stage, making certain that the state’s workforce is ready to achieve altering the semiconductor panorama.

Odisha can also be keen to foster a semiconductor ecosystem within the state. The UK-based SRAM & MRAM Group have already began investing within the state because it signed an settlement with the federal government. Odisha additionally signed one other pact with Epic Foundation final yr for designing and manufacturing chips in addition to digital merchandise.

In July, in the meantime, the Odisha authorities authorized the semiconductor manufacturing and fabless coverage. Under this, the state hopes to have a minimum of one manufacturing unit and 100 fabless design firms. It can also be anticipated that 5,000 direct and 20,000 oblique jobs might be created in Odisha in seven years.

Recently, the Assam authorities, too, introduced that it had authorized the Assam Electronics (Semiconductor, and so forth) Policy 2023, throughout its one centesimal cupboard assembly. It is designed to remodel the state right into a dynamic and self-sustaining centre for semiconductor manufacturing and electronics manufacturing; and it additionally goals to draw investments in semiconductor fabrication and design.

This coverage has formidable targets, together with the creation of extra job alternatives within the world market, improvement of a sturdy ecosystem and enhancing market resilience. The advantages will prolong to all new entities below the class of ‘semiconductor manufacturing’.

Eligible industrial models could have the chance to implement their authorized capability plan in phases. It was stated this implementation should happen throughout the specified timeframe of three years for MSMEs and 5 years for big industries from the date of their preliminary capital funding.

Assam chief minister Himanta Biswa Sarma stated: “Advanced states like Uttar Pradesh, Gujarat and Odisha have announced a policy for semiconductors. We have announced a policy where there will be a capital investment subsidy. With our new production-linked incentive policy, Assam will soon attract investments to manufacture semiconductors in the state.”

“We have some positive vibes. Due to the clean and

pure water

of the Brahmaputra river, many industrialists have evinced interest. For the semiconductor industry, clean water is required. Many are asking if we have a policy or not. Today, we have approved a policy and we have positive vibes. I am very hopeful,” he added.

Talking concerning the insurance policies of Odisha and Assam, IESA chairman Sanjay Gupta stated the proactive steps in launching personal semiconductor insurance policies following Gujarat’s lead, had been undoubtedly commendable. He stated these insurance policies mirrored a dedication to align with the National Policy on Electronics 2023 and the National Policy on Semiconductor Manufacturing 2023, aiming to place India as a worldwide hub for electronics system design and manufacturing (ESDM).

“Odisha’s Semiconductor Manufacturing and Fabless Policy 2023, is an encompassing strategy that spans the entire semiconductor value chain. By offering incentives such as subsidies on land, power and water tariffs as well as production-linked incentives, the policy seeks to create an appealing investment environment and lays emphasis on fostering a thriving ESDM ecosystem through research, innovation and entrepreneurship,” Gupta informed News18.

Similarly, when it comes to Assam’s coverage, he stated: “Offering a substantial capital investment subsidy along with various other incentives like interest subsidy, stamp duty exemption, GST reimbursement and employment generation subsidy, Assam’s policy encourages both domestic and foreign investments. This approach demonstrates a forward-looking strategy that recognises the role of semiconductors in the digital economy and national security.”

He additional stated these insurance policies align with the regional strengths of Odisha and Assam, which embody expert human assets, ample pure assets and strategic geographical areas.

“In the foreseeable future, these states are poised to emerge as appealing destinations for the ESDM industry, playing a vital role in the growth and advancement of the overall electronics sector in India. At IESA, we anticipate that these policies will contribute significantly to creating a robust ecosystem that attracts investments, fosters innovation and paves the way for India to become a global leader in semiconductor manufacturing and design,” he added.