Semiconductor firm Hindustan Semiconductor Manufacturing Corporation (HSMC) has approached the government seeking market commitment to set up a high-technology electronic chip plant that entails investment of around Rs 290 billion crore.
HSMC Chairman Deven Verma told the PTI in an interview that HSMC has been working with potential investors. However, investors want to see a reliable market size for which we have approached the Government
HSMC is the only electronic chip firm that is working with the Government to set up India’s first semiconductor plant. It has tied up with STMicroelectronics and Silterra Malaysia to set up the facility.
The Government had also approved the JP Associates-led consortium to set up one more plant, but the group backed out in the absence of an appropriate market.
The Cabinet had initially cleared setting up of the two semiconductor plants in September 2013. A global tender was issued to invite interest from other semiconductor firms to set up plant in India. The government had promised same incentives as the two electronic chip plants, but no company turned up.
Chips constitute a major cost of smart devices and are considered as drivers of modern electronic products like mobile phones, camera, automotive and defence electronic products and the like.
The Government has given HSMC time to submit its investment road map with firm financial commitments.
Verma said that the Government is giving subsidy to electronic companies and those companies’ procurements should be channelised such that they procure India-made products. This will also help implementation of ‘The Make in India’ programme. Once we get India market commitment, it will become viable to make chips in India.
The Government, he said, already has policies like preferential market access (PMA) in place that needs to be implemented sincerely for cyber security of the country.
