India's Semiconductor Mission Phase 2 Expected to Exceed $10 Billion
Govt's semicon sops 2.0 may top $10 billion: IESA prez
The Economic Times
Image: The Economic Times
The second phase of India's Semiconductor Mission (ISM) is projected to surpass its initial budget of $10 billion due to rising memory chip prices. Ashok Chandak, president of the India Electronics & Semiconductor Association (IESA), emphasized the need for increased incentives amid an ongoing supply shortage.
- 01The rising prices of memory chips are prompting calls for higher incentives from industry stakeholders.
- 02The Ministry of Electronics and Information Technology (MeitY) has been informed about the necessity for increased support.
- 03Memory prices are expected to remain high for at least 18 months due to supply constraints.
- 04The ISM 2.0 incentive package will focus on advanced memory packaging, particularly high bandwidth memory (HBM).
- 05Production capacity for memory chips will take time to increase, maintaining price pressure.
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The second phase of the India Semiconductor Mission (ISM) is anticipated to exceed its initial funding of $10 billion. Ashok Chandak, president of the India Electronics & Semiconductor Association (IESA), highlighted the necessity for increased incentives due to the rising prices of memory chips, which are expected to stay elevated for at least 18 months due to a supply shortage. Stakeholders have communicated their concerns to the Ministry of Electronics and Information Technology (MeitY), emphasizing that production capacities for memory chips will take time to ramp up, thereby maintaining pressure on prices. The upcoming ISM 2.0 incentive package will prioritize advanced memory packaging technologies, especially high bandwidth memory (HBM), which offers superior data processing capabilities compared to traditional memory solutions.
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The increased funding for the semiconductor sector could lead to enhanced production capabilities and job creation in the electronics industry.
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