Semiconductor policy to trigger $ 15 bl investment

Bangalore, Feb 23: The maiden semiconductor policy announced by the Centre will usher in an investment commitment of 15 billion US Dollars in the country over the next three years.

While, the India Semiconductor Association (ISA), which had played a pivotal role in the announcement of the policy, stated today that the policy might trigger an investment between six to 10 billion dollars, Ajay Jalan, the Chief Financial Officer of Sandalwood Partners, an investment consultant company, indicated that commitment to the tune of 15 billion dollars could firmed up.

Besides Fabs for silicon wafers, a number of downline units, including assembly, testing and electronic manufacturing units would be set up.

The New policy announced by the Government yesterday, envisaged an incentive of 20 per cent of the investment in Special Economic Zone to Fab units with a threshold investments of Rs.2500 crore and ecosystem units with an investment Rs.1000 crore. For non SEZ units it would be 25 per cent with exemption in countervailing duty. Apart from this, the units would also enjoy all SEZ benefits.

Talking to newsmen here ISA Chairman Rajkumar Khare said though the government had diluted the proposal putforth by ISA, which had sought a minimum incentive of 25 per cent, a beginning had been made and this should trigger enormous growth potential in the electronic industry sector, which would leapfrog the achievements of the IT sector.

According to ISA President Poornima Shenoy apart from SemIndia which had announced setting up of a Fab in Hyderabad, two other companies had announced their intentions. Besides the Assembly, Testing and manufacturing sector would get tremendous boost, she added.

The ISA complimented the Union Finance Ministry and the Information and Communications Technology Ministry for making the Policy a reality.

UNI