The Semiconductor industry is a $400 billion industry worldwide as in 2016. Of this, Chip design constitutes 30%, accounting for $100 billion. The balance is accounted by Assembly, Testing, Marking and Packing.
Design forms the core strength of India’s Semi conductor industry. More than 200 companies including over 100 MNCs have invested in Design in the Semi Conductor industry in India. Designs include VLSI design, board design and embedded software. More than 80% of revenue is generated from design which accounts for around $10 billion. The largest clusters are housed in Bangalore (70%) followed by Hyderabad, Delhi & NCR and Chennai.
India’s contribution to Semi Conductor manufacturing is minimal and stood at $4 billion in 2016. In prospect, growth is expected in mobile handsets, desktops, notebooks, GSM stations, set top box and energy meters. Chip fabrication is limited to defence and aerospace sectors only.
Semiconductors are recognized as technology providers for the entire electronics value chain. We have MNCs like Elotec, Flextronics, Foxconn, Jebil, Solectron and many more investors in India.
The Karnataka Semi Conductor Policy 2010 aims to promote Karnataka as a Semiconductor design hub in the country, attract investments in high tech manufacturing, promote generation and use of green/solar energy and focus on HRD. A host of incentives and assistance have been provided in the Karnataka Semi Conductor Policy. The Policy among others, encourages solar PV manufacturing, provides for incentives for setting up ATMPs (Assembly, Testing, Manufacturing and Packaging), establishment of industrial parks/SEZs under PPP model and assistance to institutions for setting up training centres for semi conductor design and manufacturing.