Electronics and Semiconductor Manufacturing Industry

So the Upcoming Semiconductor related ecosystem will be in

1. Gujarat. (OSAT)
2. Assam. (OSAT)
3. TamilNadu (Lithography Machines)
4. Odisha (SiC based semi)


What are the other states with Semicon Industry?
1. Maharastra (Tower)
2. Punjab - Mohali (Rumoured SCL Upgradation)
 
ArjunMK1A said:
So the Upcoming Semiconductor related ecosystem will be in

1. Gujarat. (OSAT)
2. Assam. (OSAT)
3. TamilNadu (Lithography Machines)
4. Odisha (SiC based semi)


What are the other states with Semicon Industry?
1. Maharastra (Tower)
2. Punjab - Mohali (Rumoured SCL Upgradation)
Click to expand...


Missed Oppurtunity.
1. Karnataka
2. UP (Could not able to bring some SAMSUNG Ecosystem compared to Apple initiative)
 
ArjunMK1A said:
So the Upcoming Semiconductor related ecosystem will be in

1. Gujarat. (OSAT)
2. Assam. (OSAT)
3. TamilNadu (Lithography Machines)
4. Odisha (SiC based semi)


What are the other states with Semicon Industry?
1. Maharastra (Tower)
2. Punjab - Mohali (Rumoured SCL Upgradation)
Click to expand...
Bro can u list the plants or factories under construction for semicon
 
Sir can anyone please explain if GOI is giving 50% cost of setting up semiconductor factory how will they recover the investment (by taxes paid by the products and employees?) . And isn't this like freebes but to corporates. And if they are giving this much money shouldn't they become partner in the company
 
FalconSlayers said:
View attachment 8959
Click to expand...

I hope GoI takes lessons from their push in semiconductor manufacturing. The government is spending around 12 Lakh crore on infrastructure every year. Great, we need infrastructure as we are deficient in it. Now every year, can't GoI set aside 2-3 Lakh crore per year to incentivize and promote different industries?

Electronics industry is huge. I am glad this is happening. Globally last year there was $4.5 Trillion worth of electronic goods manufactured. And China captured 60% of that pie which comes to around $2.5 Trillion. This is a huge industry. We should not stop until we export $1 Trillion worth of all kinds of electronic goods. Whether it's chips, PCBs, tools, we need to go all out in conquering this industry.
 
dr.defence said:
Sir can anyone please explain if GOI is giving 50% cost of setting up semiconductor factory how will they recover the investment (by taxes paid by the products and employees?) . And isn't this like freebes but to corporates. And if they are giving this much money shouldn't they become partner in the company
Click to expand...

very good question..

there are two ways to look at it, one is yours from a tax payer perspective by viewing it as freebies to corporates, which is the typical socialist view.

another way is, viewing it as gormint reinvesting part of tax revenues they got from electronics manufacturing back into electronics supply chain, to increase the number of locally manufactured components, which in turn will increase future gormint revenues as more of the supply chain gets localised.

this is an excerpt from lok sabha reply.
The domestic production of electronic items has increased significantly fromINR 1.80 lakh crore (29.8 Billion USD) in 2013-14 to INR 8.22 lakh crore in 2022-23 (102 BillionUSD) at a Compound Annual Growth Rate (CAGR) of 18.4%, which is further expected to growuptoINR23,95,195 crores (USD 300 Billion) by 2026.Export of electronic goods has also increasedfrom INR 47,557 crore (USD 7.86 Bn) in FY 2013-14 to INR 1,89,934 crore in FY 2022-23 (USD23.5 Bn), exhibiting Compound Annual Growth Rate (CAGR) of 16.7%(as per industryestimates).
Click to expand...

if we subtract total exports from domestic production for 22-23, we get 6.33 lakh crore domestic sales from locally produced electronics. at 18% GST for electronics on domestic sales, gormint gets 1.13 lakh crores of tax revenues per year minimum. and the total incentive package is around 76000 crores for semi con, which is less than what revenues exchequer is receiving per year. if these companies manage to utilise this 76000 crore incentive over five years, government is giving out only 15000 crores per year on average .but because of this incentive, more components are made here, so more jobs, more currency circulation, more tax revenues for gormint.

may not be exact numbers, but to get a rough idea.

https://sansad.in/getFile/loksabhaquestions/annex/1715/AU706.pdf?source=pqals#:~:text=The domestic production of electronic,USD 300 Billion) by 2026.


this is just one angle, others are:

- saving forex outgo
- creating job opportunity
- expanding India's manufacturing landscape
- protecting supply chain from global crisis shocks.

etc..
 
FalconSlayers said:

View: https://x.com/livemint/status/1823531807226388685?t=36IOeoGKlapxm4uJa3TQTw&s=19


View: https://x.com/EconomicTimes/status/1823345006477725743?t=7hHl3zOON1znJGtW7KQyew&s=19


View: https://x.com/ETNOWlive/status/1823336093095284907?t=H0EMyBwSK_MKzCgWsbRwjA&s=19
Click to expand...


economictimes.indiatimes.com

L&T Semiconductor Technologies, IBM to collaborate in R&D to design advanced processors

L&T Semiconductor Technologies and IBM have announced a collaboration to design advanced processors, focusing on innovation, functionality, and performance. The partnership aims to develop reliable, secure, and scalable computing solutions for various applications. This initiative was revealed...
economictimes.indiatimes.com economictimes.indiatimes.com
1725969673521.png
 
ezsasa said:
very good question..

there are two ways to look at it, one is yours from a tax payer perspective by viewing it as freebies to corporates, which is the typical socialist view.

another way is, viewing it as gormint reinvesting part of tax revenues they got from electronics manufacturing back into electronics supply chain, to increase the number of locally manufactured components, which in turn will increase future gormint revenues as more of the supply chain gets localised.

this is an excerpt from lok sabha reply.


if we subtract total exports from domestic production for 22-23, we get 6.33 lakh crore domestic sales from locally produced electronics. at 18% GST for electronics on domestic sales, gormint gets 1.13 lakh crores of tax revenues per year minimum. and the total incentive package is around 76000 crores for semi con, which is less than what revenues exchequer is receiving per year. if these companies manage to utilise this 76000 crore incentive over five years, government is giving out only 15000 crores per year on average .but because of this incentive, more components are made here, so more jobs, more currency circulation, more tax revenues for gormint.

may not be exact numbers, but to get a rough idea.

https://sansad.in/getFile/loksabhaquestions/annex/1715/AU706.pdf?source=pqals#:~:text=The domestic production of electronic,USD 300 Billion) by 2026.


this is just one angle, others are:

- saving forex outgo
- creating job opportunity
- expanding India's manufacturing landscape
- protecting supply chain from global crisis shocks.

etc..
Click to expand...
Thank you sir for your intellectual insight
 
dr.defence said:
Sir can anyone please explain if GOI is giving 50% cost of setting up semiconductor factory how will they recover the investment (by taxes paid by the products and employees?) . And isn't this like freebes but to corporates. And if they are giving this much money shouldn't they become partner in the company
Click to expand...
You need to see the investment in the context of our Electronics manufacturing ecosystem.
And all this because the Government has lined up a 30 Billion $ incentive package if we consider PLI Electronics & ISM together.

When the market size increases with significant domestic value addition. The Government can recover a large portion of their investment through GST & Corporate Taxes.

Electronics/Computers is the biggest exporting sector for China, accounting for almost 1.2 Trillion $ in 2021.
1000042464.png
It was also the biggest exporting sector for all other East Asian countries.
1000042465.png
In case of India, Electronics was the 5th largest exporting sector in FY 23-24 (29 Billion $) & in 1st Quarter of 2024 Electronics has become the 3rd largest. Thanks all the Government initiatives.
1000042541.jpg
So I don't think investment in ISM or PLI is Corporate Freebies as it has generated a significant momentum in both Job creation & domestic value addition in this sector.

Now in the context of Government partnership in the JVs receiving the incentives for manufacturing-

The real question is what does GoI bring to the table as a Joint Partner except for enforcement of regulations.

Companies like TATA/Adani/L&T can leverage their domain expertise to ensure faster turn around time for such factories as well as in-house R&D to absorb the tech. GoI doesn't have the management capacity to handle such projects. They are better off ensuring that the Corporate Taxes are paid on time.
 
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