Future of Electronics Industry in India
Most of the Indian parents are planning to get their ward admitted in engineering to safeguard career of their wards. Electronics and Telecommunication engineering and allied branches is one of the best engineering disciplines. Parents are grappling with a question “Will this branch provide for a stable and ever growing career to their ward?”
The following piece of information would help them make an informed decision in this regard.
Drivers of Electronics Industry
Nation First: SDG
Since India has committed to lower the carbon footprint. One of the Sustainable Development Goals (SDGs) of India is to lower of carbon emission. India has promised a reduction of Carbon Emission Intensity by 33-35 per cent by 2030 (not too far). As a matter of action plan India promotes manufacturing and use of Electric Vehicles. Not only that, India has given an attractive tax benefit to the users of Electric Vehicles if they buy Electric Vehicles on a loan. In other words India is promoting sale of Electric Vehicles.
Increase of EV is not a business demand but it is the mission of India.
BMS
In this regard the manufacturers of EV are in need of electronics systems better known as Battery Management System. Every single EV will have this electronic system installed.
Automotive Electronics
Automobile industry is growing by multi-fold since the COVID has receded. Penetration of electronic sensors and actuators for better performance of engine and overall vehicle has increased alot. Share of electronics in the entire cost of automobile is not less than fifty per cent.
Consumer Electronics
In the wake of “both parent working”, families depend a lot on consumer electronic goods. These goods not only get the jobs done but also provide peace of mind amidst of fast paced life. We should also note that India is one the world’s biggest consumer of electronics.
Industry 4.0
Most of the mass production industries are now walking the path of being smart factories. There is massive need of high end automation to become a smart factory.
Actions by Government of India
In the year 2019 Government of India officially approved and announced its policy regarding Electronics. The document is publicly available and is named National Policy on Electronics 2019 (NPE-2019).
The salient features of the policy are:
- Create eco-system for globally competitive Electronics System Design and Manufacturing (ESDM) sector: Promoting domestic manufacturing and export in the entire value-chain of ESDM.
- Provide incentives and support for manufacturing of core electronic components.
- Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
- Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
- Promote Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Start-ups in emerging technology areas such as 5G, loT/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics, Additive Manufacturing, Photonics, Nano-based devices, etc.
- Provide incentives and support for significantly enhancing availability of skilled manpower, including re-skilling.
- Special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
- Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
- Promote trusted electronics value chain initiatives to improve national cyber security profile.
[Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1565285]
The name of Ministry that looks after the manufacturing of electronics goods is MeitY that is (Ministry of Electronics and Information Technology). Its administration is headed by highest official that is Secretary of the minister.
In order to realize the dream of being one the vital global player in the field of manufacturing of electronic chips India has declared its mission named India Semiconductor Mission.
Some scheme run by government of India to foster the growth of manufacturing of products related to electronics (VLSI) is India Semiconductor Mission(ISM).
The aim of the mission is to build a vibrant semiconductor and display eco-system.
There are four schemes under ISM namely Semiconductor Fabs, Display Fabs, Sensors Fabs and Design Linked Incentives.
Semiconductor Fabs
Objective: To attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain
Eligibility: Companies / Consortia / Joint Ventures proposing to set up a Silicon CMOS based Semiconductor Fab in India for manufacturing Logic / Memory / Digital ICs / Analog ICs / Mixed Signal ICs / SoCs
Tenure of the Scheme: Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.
Display Fab Scheme
The scheme is aimed at providing support for setting up manufacturing units related to electronic display devices. Types of displays that are covered in the scheme are
- Liquid Crystal Display
- Light Emitting Diode
- Organic LED
- AMOLED Display
[source: https://ism.gov.in/ Schemes]
Semiconductor Giants in India
Micron Technology Incorporation announces establishment of a Greenfield project in Gujarat. It will work in the field of semiconductor manufacturing. Microns new facility will enable assembly and test manufacturing for both DRAM and NAND products. It will create direct 500 jobs related to technology; it will also create 15000 indirect community jobs.
[source: https://investors.micron.com/node/45446/pdf]
Tata Electronics Private Limited is a private Greenfield venture. Government of India has approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility in Dholera, Gujrat in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) Taiwan. Total investment 91,000 crores.
Tata Semiconductor Assembly and Test Private Limited TSAT an enterprise of Tata group will set up a highly sophisticated semiconductor fabrication plant in Morigoan District of Assam. Total investment of 27000 crore rupees. It will produce jobs not less than 5000.CG Power and Industrial Solutions Limited have started construction work at the designated place in Gujarat. After the start of functioning the company will provide employment for about 5000 people. Total investment laid in this project is about 7,600 crore.
Support by GoI to set-up a chip manufacturing facility in India
The Greenfield EMC project in Maharashtra is to be established at a cost of Rs.492.85 crore in Ranjangaon, near Pune. This is to be the state’s first EMC project. It is expected to bring in over Rs 2,000 crore in investments.
The Central Government’s approval was given to Maharashtra’s State Industrial Agency and Maharashtra Industrial Development Corporation. Of the total cost, Rs 207.98 crore will be from the Central Government and the remaining Rs 284.87 crore will be funded by the MIDC and the State Industrial Agency.
| Sr. No. | State (Detailed Address) | Approved Project Cost |
| 1 | Maharashtra, District Pune, Village Shirur and Karde. | 492 Cr. |
| 2 | Karnataka Kotur & Belur (V), Dharwad (T) | 179 Cr. |
| 3 | Uttarakhand, IIM Kashipur | 136 Cr |
| 4 | Andhra Pradesh, Ambavaram (V),Vallur(M);Kopparthy (V),C.K.Dinne(M) and Rampathadu (V), Pendlimarry (M) | 748 Cr. |
| 5 | Haryana, Sohna | 662 Cr. |
| 6 | Chattisgarh, District Riapur, Tehsil Abhanpur, village Tuta. | 103 Cr. |
| 7 | Assam, District Kamrup, Tehsil Palasbari, Village Bongora. | 119 Cr. |
| 8 | Goa, District Goa, Taluka Pernem, Village Tuem. | 167 Cr. |
| 9 | Jharkhand, District Saraikela-Kharswan, Village Aidityapur. | 97 Cr. |
| 10 | Kerla, District Ernakulam, Taluka Kanayannur, Village Kakkanad. | 140 Cr |
| 11 | Madhyapradesh, District Badwai | 47 Cr. |
| 12 | Madhyapradesh, District Purva Jabalpur | 38 Cr. |
| 13 | Odisha, District Khudra, Bhubaneshwar Industrial estate. | 200 Cr. |
| 14 | Rajasthan, District Alwar Tehsil Bhiwadi, Village Salarpur | 46 Cr. |
| 15 | Telangana, District Hyderabad, Fab City | 667 Cr. |
| 16 | Telangana, District Rangareddy, Village Maheshwaram | 436 Cr. |
| 17 | Uttarpradesh, Greater Noida, Industrial Area | 115 Cr. |
| 18 | West Bengal District Ramnagar, 24 Parganags | 58 Cr. |
| 19 | West Bengal District Ramnagar, 24 Parganags | 58 Cr. |
| 20 | Gujrat, District Kutch, Village Tunda | 745 Cr. |
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Source:https://www.meity.gov.in/content/greenfield-electronic-manufacturing-clusters
Hope this document has helped you to gauge the future demand of Electronics and Telecommunication Engineers
Vasant B D (ME, MBA)
Assistant Professor
Dept. of Electronics and Telecommunication Engineering
Marathwada Mitra Mandal’s College of Engineering Karvenagar Pune 52, Maharashatra, India