Semiconductor industry eagerly awaiting Centre's policy

Bangalore, June 18 (UNI) India's leapfrog in the semiconductor and electronic industry hinges on the semiconductor policy of the Union Government as the country already missed the bus in the 1980s with the East Asian Countries and China cornering the glory and emerging a strong base for Chip manufacture.

The three-billion Dollar investment proposed by SemIndia in Hyderabad has come as a golden opportunity for India to make out a strong case that it was suitable destination for future investments in the sector.

Industry sources told UNI that apart from private investment, the Government had to pitch in a strong contribution either in the form of equity or concessions to enable the industry blossom.

The Industry, which was at a take off stage, was all set to witness a tangential growth 2007 onwards. The electronic equipment manufacture, which grew at 25 per cent in 2005, was expected to reach a 40 per cent growth rate in 2007, 50 per cent in 2010 and 34 per cent in 2015, according to a report made by ISA with Frost and Sullivan. The Industry's growth in India was expected to be 5.5 times more, over the global production between 2010 and 2015.

Stressing the need for the government to actively participate in the sector, the India Semiconductor Association (ISA) had presented the Union Communication and Information Technology Ministry with a comparative intiatives of governments in China, Singapore, Taiwan and Israel, making out a strong case for India to follow suit.

Besides equity contribution, these countries had either set up Research and Development Funds or provided subsidised loans or extended tax holidays and income tax exemptions for a specified period to enable the Fabs take a firm root.

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