New Delhi, Apr 29 (KNN) The India Cellular and Electronics Association (ICEA) has urged the government to prioritise domestic capabilities in semiconductor design and manufacturing, treating it as a strategic sector.

The association has outlined a multi-pronged approach to redefine India's role in the global chip supply chain, which is facing ongoing shortages and geopolitical tensions, reported The Telegraph.

According to ICEA, a dedicated capital market system for the electronics and high-tech industry will make low-cost funds available to the semiconductor sector.

The body has advocated for government investment in existing fabrication plants (fabs) to bolster domestic production capacity.

It has also emphasised the need for mechanisms to support burgeoning semiconductor design firms and foster a skilled semiconductor workforce as essential steps towards building a self-reliant semiconductor ecosystem.

ICEA's report highlights the importance of a comprehensive design ecosystem. The association encourages major Indian companies and Original Equipment Manufacturers (OEMs) to participate in semiconductor design and core intellectual property (IP) creation.

To incentivise domestic production, ICEA proposes including mask sets, crucial for chip design, in the government's existing Design-Linked Incentive (DLI) scheme.

They also advocate strengthening domestic intellectual property by subsidising the cost of mask sets for Indian design firms by up to 80 percent.

ICEA chairman Pankaj Mohindroo stated, "India stands at a pivotal juncture to redefine its role in the global semiconductor value chain as we navigate a transformative era in electronics manufacturing."

The association's call for government support aligns with India's broader push for self-reliance in critical sectors, aiming to build a robust semiconductor ecosystem within the country.

(KNN Bureau)