The Hindu : Tamil Nadu / Chennai News : Semiconductor policy on the cards

Online edition of India's National Newspaper
Tuesday, Aug 29, 2006

Tamil Nadu

Tamil Nadu - Chennai

Semiconductor policy on the cards

Staff Reporter

Prime Minister will chair a meeting shortly, says Dayanidhi Maran

CHENNAI: A policy to support growth of the semi-conductor industry through a combination of initiatives, including fiscal incentives and equity participation, is on the anvil, Union Minister of Communications and Information Technology Dayanidhi Maran said on Monday.

The Prime Minister is likely to chair a meeting on the policy prepared by the IT Ministry, the nodal agency, in association with the India Semiconductor Association (ISA). The Finance Minister had given an indication of the policy in the Budget, Mr. Maran told a meeting organised by the ISA to host a delegation from the Taiwan Semiconductor Industry Association (TSIA).

The 19-member delegation comprising senior officials of companies in semiconductor and allied sectors, besides research institutions, began the first leg of its trip. The visit to Chennai, Bangalore and New Delhi is for exploring business opportunities.

Mr. Maran said India was committed to developing the semiconductor industry and was looking forward to assistance from Taiwan. Apart from the advantages, including the vast pool of talent and low labour cost, for the manufacturers, the country boasted of a good market. As per estimates, the market for semiconductor in India would be $33 billion in seven years.

TSIA president T.Y. Wu made a presentation on the industry. A survey by the Association showed that Taiwan IC revenue, including design, manufacturing, packaging and testing, grew by 34 per cent during the second quarter of this year. Later participating in a meeting, organised by the Southern India Chamber of Commerce and Industry and the ISA, Mr. Wu said the flow of Taiwanese investment in India would depend on "how fast you [India] can ramp up your infrastructure."

Urging India to leverage the strong manufacturing capabilities of Taiwan in IC design and software, Robert Li, strategic sales manager, Synopsys Taiwan, said stable infrastructure influenced such investments.

The first secretary at the Taipei Economic and Culture Centre in New Delhi, Li-Tong Wang, in his presentation on the economy of Taiwan, said the services sector contributed 73 per cent to its gross domestic product. SICCI's Technology Committee chairman Ar.Rm. Arun said the increasing consumption of consumer electronics in India augured well for the semiconductor industry.

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