Govt will soon launch new PLI scheme for IT hardware: Union minister

The government will soon launch a new production-linked incentive (PLI) scheme aimed at supporting manufacturers of IT hardware and computer servers, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said on Tuesday.

The scheme will provide additional incentives for manufacturers and original equipment manufacturers (OEMs) who incorporate Indian-designed IP into their systems and products.

“With increasing digitalisation around the world, there has been an increase in the demand for products as well as talent. The supply chains are also being redesigned around concepts of trust and innovation and not on lines of price and efficiency as was done earlier. These are exciting times for all professionals connected to these sectors,” the minister said.

The centre is focusing on boosting semiconductor and electronics manufacturing with an aim to grow India’s share in the $3 trillion global electronics industry. The ministry of electronics and IT (MeitY) has previously announced a nearly $10 billion PLI scheme to encourage semiconductor and display manufacturing in the country. It aims to have domestic electronics hardware manufacturing worth $300 billion and $120 billion in exports by 2026.

Chandrasekhar was virtually addressing a gathering of over 2,000 engineers, students, faculty members, industry experts and representatives, academia, researchers, bureaucrats and government bodies as part of the 36th International Conference on VLSI Design and the 22nd International Conference on Embedded Systems in Hyderabad.

VLSI (Very-large-scale integration) refers to a process in which millions of MOS transistors are combined and integrated on a single semiconductor microchip. VLSI circuits are widely used across electronic products from personal computers to medical electronics systems.

The minister said by 2024 Indian startups will work with global majors and develop IP and devices that are either co-owned or owned by them with the support from the Semicon India Future Design program. He added that the country is working hard to develop global standard capabilities in the Semiconductor design, manufacturing and packaging ecosystem.

“Prior to 2014, India’s digital economy was limited to the tech services industry manned by a few companies. In 2022 however, the digital and technological ecosystem has significantly been re-architected and diversified covering the full scope of innovation and technology. India’s Techade is not just about the future of the internet or direct-to-consumer technology but just as much about Electronics and Semiconductors,” the minister said at the conference.

The International VLSI Design & Embedded Systems conference is a premier global conference focusing on the latest advancements in VLSI and Embedded Systems.

Chandrasekhar said the Government had taken a slew of measures to re-architect and significantly diversify the innovation and technology ecosystem to take forward the goal of India’s Techade as envisioned by the Prime Minister, Shri Narendra Modi.