In order to promote a self-sustaining semiconductor ecosystem, the Andhra Pradesh (A.P.) government approved the Semiconductor & Display Fab Policy 2024-29 to draw investments in the semiconductor and display fabrication sector, with a particular emphasis on Outsourced Assembly & Testing (OSAT), Assembling, Testing, Marking, and Packing (ATMP), and other developing sub-sectors. According to G.O. Ms. No.7 of November 14, 2024, the policy is in effect for five years.
According to reports, the Government of Andhra Pradesh (GoAP) unveiled the A.P. Electronics Manufacturing Policy 2024–2029 in an effort to draw in investments in consumer durable and non-durable electronics as well as white and brown electronic goods.
Nonetheless, the ecology of semiconductor fabrication, which provides the electronic circuit boards that serve as the foundation for all electronic products, continues to be the ultimate goal for a flourishing electronics sector that crafts the latest A.P. Electronics Manufacturing Policy 2024–2029.
The ecosystem of semiconductor fabrication mostly consists of “clean rooms,” where the environment is strictly regulated and etching, doping, and dicing equipment is costly to construct.
In order to capitalize on the synergies, economies of scale, and economic scope between the semiconductor fab facilities and electronics industry, the GoAP introduced the Semiconductor & Display Fab Policy.
The plan called for providing subsidies to India Semiconductor Mission-approved plants as well as units that were not certified under the program but met GoAP requirements. Mega and ultra-mega projects would also receive specially designed incentives.
In order to accelerate the sector’s development, GoAP made the decision to build the following infrastructure in PPP mode with funding available for Viability Gap: roads, storm water drains, industrial water supply, industrial quality clean rooms, conference rooms, and other facilities for executives and employees.
Over the next five to 10 years, the Semiconductor & Display Fab Policy primary goal is to generate high-end direct jobs.
The Indian Electronics Market
The Indian electronics market, which was valued at USD 118.2 billion in 2019–20, is expected to quadruple to USD 400 billion by 2025 due to increased disposable incomes and income levels.
Mobile phones, industrial electronics, and strategic electronics are some of the primary electronics subsectors in India that have potential for expansion.
The Fast-Growing Electronics Manufacturing Industry
The electronics manufacturing industry has become one of the fastest-growing industrial sectors in the world, with a global production of over USD 2 trillion in 2017–18.
China, South Korea, and Taiwan have historically accounted for the majority of industrial production, but the COVID-19 pandemic’s effects on supply chain reorganizations and the rapidly changing nature of global trade are attracting investments to countries like India.
Currently, the Electronics System Design and Manufacturing (ESDM) industry employs about 20 lakh people nationwide. In its National Policy for Electronics 2019, the Indian government highlighted the strategic importance of electronics production and established a target of producing one billion mobile phones by 2025.
The latest Semiconductor & Display Fab Policy introduced by Andhra Pradesh Government will be valid till the next five(5) years. This also makes AP the fifth state with a solid framework on semiconductors and drawing a valuable semiconductor policy.
The earlier states with a Semiconductor & Display Fab Policy are Gujarat, Odisha and Tamil Nadu which aims to create a solid semiconductor industry in their respective states.
