New PLI scheme for IT server, hardware to offer more sops for IP designed in India

Telangana Industries and IT Secretary Jayesh Ranjan, VLSI Society of India president Satya Gupta with senior executives of semiconductor firms at the VLSI Design Conference 2023 in Hyderabad on January 10, 2023. Photo: Special Arrangement

India will soon be launching a production linked incentive (PLI) scheme for IT server and hardware manufacturing with one of its facets being to encourage use of IP generated in the country.

It will be very similar to the PLI for mobile phones that has been extremely successful. “One of the things in the [new] PLI scheme is we will create additional incentives for manufacturers or OEMs that incorporate IP designed in India into their systems and products,” Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said on January 10.

The Minister, who was virtually inaugurating VLSI Design Conference 2023, said this highlighting how India is pursuing a vision of emerging as a semi conductor hub that while being relevant for the country will contribute significantly to the global innovation ecosystem. A number of initiatives have been unveiled in this direction, including the India Semiconductor Mission as part of which the government of India has set aside $10billion to invest, foster and catalyse the semiconductor innovation ecosystem in India.

“By 2024, we believe India would step into semiconductor manufacturing space and clearly catalyse a larger domestic design and innovation ecosystem,” Mr. Chandrasekhar said. The government has also announced $200 million to invest in startups that design or co-design IP, tools or devices for next generation of applications.

Torrent pace

The Minister said “in a lot of ways we are putting government capital to work in actively catalysing the India semiconductor ecosystem.” In doing so, the government is working at an extremely torrid pace to achieve in next five years what most countries, including China attempted to do over several decades, he said, pointing out that the opportunities in the VLSI ecosystem are expanding at an unprecedented pace.

The organisers of the VLSI Design Conference 2023 said it is a 5-day programme that got under way in Hyderabad on January 8 and designed to serve as a platform bringing together key stakeholders, including industry professionals, students and faculty, academia, researchers and government officials.

Telangana Industries and IT Secretary Jayesh Ranjan said the State realising the growth potential has created separate wings in the IT department focused on semiconductor and advanced computing areas. With some of the leading firms in the space having their research and development facilities in the State and also expanding footprint, the emphasis of the government is also on skilling.

VLSI Society of India president Satya Gupta and MD and CEO of MosChip Venkata Simhadri underscored the significance of creating an environment encouraging more Indian firms to get into product development in addition to the emphasis on promoting make in India.