The Hindu Business Line : Industry gives thumbs up to fab policy

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Hyderabad Feb 22 The Indian Semiconductor Association (ISA) and various players from the semiconductor industry welcomed the fab policy that includes SEZ status and related incentives, cleared by the Union Cabinet on Thursday.

This policy follows in-principle clearance by Cabinet last month and provides for incentive package to attract investments for semiconductor fabrication, and micro and nano technology manufacturing industries.

The President, ISA, Ms Poorima Shenoy, said the policy would provide an impetus for the growth of the sector and the electronics industry, and the overall ecosystem. The domestic demand for electronic goods is expected to reach $363 billion by 2015 and semiconductors would account for $ 36 billion. The policy will make India an attractive destination for global semiconductor and hi-tech companies plus investors.

The Chairman, ISA, Mr Rajendra Kumar Khare, said, "ISA has been working with the various departments in the Government to make this policy happen and we are delighted to see our efforts bear fruits."

Mr Vinod K. Agarwal

The Chairman, SemIndia, Mr Vinod Agarwal, said the policy will give a major fillip to high tech manufacturing, which can become a significant contributor to the economy. Complimenting the PM and the Ministers of Finance and ICT, and the Chief Minister, Mr Agarwal said, "This will motivate global investors."

The Managing Partner, Sandalwood Partners, Mr Bob Kondamoori, said, "the venture capital investor community has been awaiting a policy with package of incentives. The Government should follow up the policy formation by creating a mechanism to implement it."

The MD, AMD India, Mr Alok Ohrie, described the policy as a definitive step towards jump-starting the high-tech manufacturing. This move has the potential to change course of IT industry landscape. AMD reaffirms its commitment to SemIndia by offering process technology for the proposed fab.

The MD, Synopsys India, Dr Pradip K Dutta, said, "Financial incentives up to 25 per cent towards the capital cost is very competitive. I expect to see some serious proposals to emerge and another round of hectic lobbying to locate these clusters in their SEZs."

The MD, Cadence Design Systems India, Mr Jaswinder Ahuja, said, "I expect significant investments to flow into the semiconductor and related manufacturing sectors. The incentive package is relatively lower than what other countries have been offering to attract semiconductor manufacturing as a strategic national priority. The huge demand opportunity that India presents offsets this in the business plan analysis of prospective investors."

The President, ARM Embedded Technologies, Mr Atul Arora, said, "Though semiconductor manufacturing would directly employ around 2,000 people for a mid-sized investment of say $1 billion, the policy will attract a slew of OEMs who have plans to manufacture electronic products here. This manufacturing of semiconductors will certainly help complete the value chain."

Interpreting the policy, ISA said the key benefit is the grant of SEZ status and other incentives for manufacture of semiconductors, displays, LCDs among others.