The shortage of semiconductors in the year 2021-2022 led to the closure or resulted in a massive decline in the production of many firms from multiple industries. The report comes in from Economic Survey, which also says that the government’s decision to allocate Rs 76,000 crore outlay for semiconductors and display manufacturing segment will help boost their production in the country. According to the survey, the government’s decision to enhance the semiconductors and display manufacturing ecosystem in the country has come at a time when there is an acute shortage of semiconductors globally due to many disruptions in the supply chain.
Semiconductor Production in India
As initially reported by PTI, the survey states that multiple companies from various industries were forced to either completely shut down the production or had a decline in the production rate due to disruptions in the supply chain. It further stated that the PLI and other schemes to boost semiconductors production would help the firms to overcome the challenges and problems presented by Covid-19, as well as will help them to become globally competitive companies when it comes to semiconductor production.
Previously in December, the IT and telecom minister Ashwini Vaishnaw said that the government is expecting an allocation of investment of around Rs 1.7 lakh crore and around 1.35 lakh jobs being created over the next four years under the incentive scheme of semiconductors approved by the cabinet. The survey report further stated that semiconductors are a crucial building block of modern technology as it is used in automobiles and their components as well as electronic and medical devices. The inclusive interventions being introduced by the government will help in enhancing the ecosystem of semiconductor production in India.
It is to be noted that a recent vision document released by the government for the electronic sector in India suggests that electronic production has the potential to reach around Rs 22 lakh crore by the year 2026. The survey states that electronics is considered to be a ‘meta-resource’ globally. It stated that the electronics industry is a rapidly growing industry around the globe as it is finding its use in almost all the sectors of the economy.