The Narendra government has modified its semiconductor policy in order to woo more manufacturers to Make in India.

While earlier incentives varied between 30 to 50 percent fiscal support depending on different categories, it has changed now, and all of them will get a flat 50 percent incentive. This modification is likely to attract large investments by companies to set up chip design and manufacturing facilities in India.

K Krishna Moorthy, CEO and president of IESA believes these modifications are going to be very attractive for the semiconductor manufacturers.

"These modifications are absolutely great. After announcing the policy in December 2021, the government was constantly in conversation with the industry trying to get feedback.

So the changes that we have seen in about 6-8 months after the policy was announced is a very clear indication that the government is considering all the inputs that were given to them. So from a capex point of view, these modifications are going to be very attractive for the semiconductor manufacturers," Moorthy said.

Jaswinder Ahuja, managing director of Cadence Design Systems, said India needs to stimulate the product design ecosystem as well as the systems manufacturing ecosystem.

"Government has recognised that it is not just manufacturing but the design is equally important. We need companies in India that are designing chips and products for the Indian market and for other markets which have similar needs. So India needs to stimulate that product design ecosystem as well as the systems manufacturing ecosystem. So these modifications are a step in the right direction," he added.

Watch the video for more.