ESDM likely to be $50-bn industry in AP by 2026
Govt schemes like SPECS, PLI, DLI, EMC 2.0 and Semiconductor Wafer Fab Policies to attract investments into the ESDM industry
image for illustrative purpose
Road map for electronics mfrg in AP
• Out of 23 EMCs in India, 4 EMCs are in AP
• Taiwan, South Korea firms look to form JVs
• More semiconductor projects to come up
• To capture 40% component value in India
Visakhapatnam: The ESDM (Electronics System Design and Manufacturing) industry in Andhra Pradesh is expected to grow to $50-billion by 2026, Arvind Consultancy CEO Sanjeev Keskar told Bizz Buzz, in an exclusive interview.
"AP government has already launched an Electronics policy, which offers good incentives to the ESDM companies. On top of that, it should focus on the companies from Taiwan and South Korea that are looking towards India to form joint ventures with domestic manufacturers. It should also create foreign desks to attract those companies to the State," he says.
Electronics manufacturing cluster (EMC) at Sri City is already very well recognised in India and it has attracted many electronic companies. There are two EMCs at Tirupati, and another EMC at Kopparthi, out of a total 23 in the country. The State must attract anchor companies in electronics manufacturing services (EMS)/ mobile phones/ EV components/ consumer electronics to the EMCs.
"There will be at least 20 compound semiconductor projects for photonics, radio-frequency microelectromechanical system (RF MEMS) sensors, and assembly, testing, marking, and packaging (ATMP) to come to India in near future. The government should focus on attracting them to the State," Sanjeev said.
He also suggested the government to attract electronic passive component and printed circuit board (PCB) manufacturing companies under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) programme. Other government schemes include Production Linked Incentive (PLI), Semiconductor Wafer Fab Policies, Design Link Incentive (DLI) and EMC 2.0.
These schemes have emerged as strong enabling instruments for attracting investments into the ESDM industry. With these incentive schemes announced by the Government of India, a high value added ecosystem is possible, Sanjeev said.
"To develop the local component manufacturing ecosystem, the State has to start with passive components like capacitors/ inductors/ bare PCB/ transformers/ resistors, followed by display/ LED/ battery and then semiconductor wafer fab and ATMP. In phase manner, we have to prepare a roadmap to capture 40 per cent of component value in India," he added.
