A task force established by the Department of Telecommunications (DoT) has suggested that the government should offer incentives of up to 75% to encourage domestic design and manufacturing of telecom chipsets.
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The Ministry of Electronics and Information Technology (MeitY) has drafted the semiconductor incentive policy, but DoT has formed several task forces to recommend measures for enhancing domestic telecom manufacturing.
Currently, the government provides financial support of 50% of the project cost through INR 76,000-crore incentive scheme aimed at developing the semiconductor and display manufacturing ecosystem in the country. This support is uniform across all technology nodes.
One of these task forces, led by Sanjay Nayak, co-founder of Tejas Networks, focused on suggesting measures to promote the production of high-volume telecom chipsets. it has submitted its recommendations to the government.
The task force on telecom chipsets, headed by Mr. Nayak and comprising representatives from industry, academia, and various government departments, has recommended that the government support fabless chip design for telecom chips to increase domestic value addition.
The initial focus should be on six types of telecom chipsets, three of which are used in consumer premises equipment (CPE), and the other three are used in network communication modules. The task force submitted its recommendations to the government recently.
“There is a $4 billion (around Rs 32,000 crore) domestic market for telecom chipsets and we need to substitute it with Indian chips across fixed wireless access (FWA), routers, 5G networks, etc,” according to a government official, adding that the task force also recommended identifying original equipment makers (OEMs) in India to support development of Indian chipsets.
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