OEMs To Get Additional Incentives For Using 'Indian-Designed' IP Under Proposed PLI Scheme For IT

Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar has announced that the government will soon launch a production linked incentive (PLI) scheme for IT sector.

The PLI scheme for hardware and servers would provide "additional incentives for manufacturers and original equipment manufacturers (OEMs) that would incorporate Indian designed intellectual property (IP) into their systems and products", the Ministry of Electronics and IT said in a statement on Tuesday (10 January).

The minister made this announcement while virtually addressing a gathering of over 2,000 engineers, students, faculty members, industry experts and representatives, academia, researchers, bureaucrats and government bodies as part of the 36th International conference on VLSI Design and the 22nd International conference on Embedded Systems in Hyderabad.

The International VLSI Design and Embedded Systems conference is a premier global conference focusing on the latest advancements in VLSI and Embedded Systems.

Talking about the opportunities in the VLSI design and embedded systems sectors, the minister said, “Prior to 2014, India’s digital economy was limited to the tech services industry manned by a few companies. In 2022 however, the digital and technological ecosystem has significantly been re-architected and diversified covering the full scope of innovation and technology".

"India’s Techade is not just about the future of the internet or direct to consumer technology but just as much about Electronics and Semiconductors. With increasing digitalisation around the world there has been an increase in the demand for products as well as talent. The supply chains are also being redesigned around concepts of trust and innovation and not on lines of price and efficiency as was done earlier. These are exciting times for all professionals connected to these sectors," he said.

Chandrasekhar emphasized the growth and opportunities in the VLSI design and embedded systems sectors, highlighting that India is working to develop global standard capabilities in the Semiconductor design, manufacturing, and packaging ecosystem.

He also talked about the government's focus on developing a strong domestic semiconductor manufacturing ecosystem and achieving self-reliance in the electronics sector through initiatives such as the Semicon India Future Design programme, which aims to have domestic startups collaborate with global majors to develop IP and devices that are either co-owned or owned by them by 2024.