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Current Trends

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21 views2 pages

Current Trends

Uploaded by

Tara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CURRENT TRENDS

POST COVID-19 OPPORTUNITY FOR INDIA IN ELECTRONICS SECTOR

Strategy for India


The Government of India has introduced the new National Policy on Electronics 2019 (NPE
2019). It aims to position India as a global hub for Electronics System Design and
Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing
core components, including chipsets, and creating an enabling environment for the industry
to compete globally.
Government initiatives to promote electronics manufacturing in the country include:
Modified Special Incentive Package (M-SIPS), Electronic Manufacturing Clusters, Electronics
Development Fund, and Compulsory Safety Standards for Electronics.
Original Equipment Manufacturing
The Government of India has taken up a policy to encourage multinational companies to set
up manufacturing facilities in India. Accordingly, few original equipment manufacturers from
abroad have decided to set up manufacturing facilities in India. Whereas Indian OEMs have
so far largely been present in a few areas such as mobile phone manufacturing, there is
tremendous potential in other sectors like medical, automotive, power electric and
electronics for storage technology.
Equipment/ Machinery Development
Development of equipment required for SMT and packaging need to be encouraged.
Appropriate policies will need to be formulated to promote export of such equipment.
Semiconductor/ Integrated Circuits
Considering that the silicon wafer and integrated circuits contribute significantly to overall
value addition, indigenous efforts for semiconductor and integrated circuit manufacturing is
important. Large multi-national players to set up facilities in India may be the most
immediate solution and a means to create an ecosystem that encourages Indian start-ups to
venture into niche and emerging areas. India, in terms of indigenous competency
development, may be the segment which does the development of discrete components,
packaging with PCB and systems integration. Focus is required on surface mount technology,
thermal management etc.
Focus on Electronic Components manufacturing
New Age Technology Usage: It is a long journey to make India self-reliant for electronic
components. Hence, it needs to be done in well designed stages. A detailed analysis of
demand across the globe along with the amount supplied by China and other countries,
needs to be studied and analysed to decide what types of ICs need to be focused upon.
Since the capital intensity is so high, pre-planning driven through data would be critical.
More importantly, India has the advantage of being a nation of consumers. This is where
India’s ability to use new age technologies such as data analytics and artificial intelligence
should come into play. India should make policies around collection of big data (anonymized)
coming in from the usage of varying consumer electronics and industrial electronics
products. Analytics driven from this data, when applied in the production and manufacturing
strategy of electronic components, can prove to be a major unmatchable advantage in this
plan. India should protect such analytics through policies and strategies, so that the same
can also help India even establish itself as an exporter in the future.
Integrated R&D: Analytics alone cannot lead to design and research. This needs to be driven
through integrated research efforts involving collaboration with academia. Our analysis
shows that there is a lot of academic work that is happening in the area, which has not yet
been used for industrial collaboration due to the lack of required infrastructure.
Parallel to encouraging globally established chip manufactures to establish manufacturing
facilities in India, it is necessary to develop an ecosystem for chip design and development in
which start-ups, R&D institutions and academia can actively participate in association with
Indian industry. Innovation in new semi-conductor materials needs to be encouraged

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