India’s cellular and electronics association, ICEA, has urged the government to prioritise domestic capabilities in semiconductor design and manufacturing by treating it as a strategic sector.

The move will make low-cost funds available to the sector through a dedicated capital market system for the electronics and high-tech industry.

The body, which represents Apple, Foxconn, Lava, and other Chinese handset companies, also advocated for government investment in existing fabrication plants (fabs) to bolster domestic production capacity and urged it to establish mechanisms to support burgeoning semiconductor design firms and foster a skilled semiconductor workforce as essential steps towards building a self-reliant semiconductor ecosystem.

ICEA outlined a multi-pronged approach to redefine India’s role in the global chip supply chain, a sector facing ongoing shortages and geopolitical tensions.

Building a robust ecosystem is another focus. ICEA calls for mechanisms to nurture fledgling semiconductor design firms and programs to create a skilled workforce. This aligns with India’s broader push for self-reliance in critical sectors.

ICEA’s report emphasises the need for a comprehensive design ecosystem.

The association encourages major Indian companies and Original Equipment Manufacturers (OEMs) to participate in semiconductor design and core intellectual property (IP) creation.

To incentivise domestic production, ICEA proposes including mask sets, crucial for chip design, in the government’s existing Design-Linked Incentive (DLI) scheme.

They also advocate strengthening domestic intellectual property by subsidising the cost of mask sets for Indian design firms by up to 80 per cent.

“India stands at a pivotal juncture to redefine its role in the global semiconductor value chain as we navigate a transformative era in electronics manufacturing,” said ICEA chairman Pankaj Mohindroo.