After Singapore, IESA in talks with South Korea, Japan, and Taiwan for semicon partnerships

The semiconductor design and electronics industry body IESA (International Electronics and Semiconductor Association) in India is in talks with corresponding associations in South Korea, Taiwan, and Japan to build global alliances and partnerships, Ashok Chandak, association president told TechCircle. This comes after the association announced a five-year partnership with the Singapore Semiconductor Industries Association (SSIA). The two associations, representing semiconductor industries in their respective countries, signed a memorandum of understanding (MoU) on Tuesday. 

“The goal is to develop a $500 billion electronic industry in India by 2030 or 2032, with a semiconductor demand of around $100 billion by that timeframe. Achieving this requires collaborative international efforts, as it cannot be done in isolation,” Chandak said.

Chandak notes that Singapore has a well-developed semiconductor ecosystem, with a significant number of fabrication units, as well as numerous assembly, test, and packaging (ATMP) and outsourced semiconductor assembly and test (OSAT) activities. This when combined with India’s expertise in design capabilities would make the partnership a mutually beneficial proposition for the countries. 

Sharing details about the MoU with SSIA, Chandak said that the partnership will bring expertise from Singapore to India at various stages, from design to manufacturing. Additionally, it focuses on skilling and talent development. The collaboration will facilitate students and professionals from India to take up related vocational training and internships in Singapore. 

“Singapore-based companies and professionals are seeking additional business opportunities in India. IESA will facilitate interested companies to expand their business into the country. This could involve joint ventures, collaborations, technology transfers, or setting up training programs,” he added. 

To be sure, the recently declared Union Budget 2024-25 allocated ₹21,936 crore to the Ministry of Electronics and Information Technology (MeitY). The allocation is 52% more than the revised estimate of FY24 which was ₹14,421 crore. This is also a 2.6% up from the interim budget allocation of ₹21,385.15 crore made in February. 

To be sure, the majority of the budget allocation increase is towards the production-linked incentive (PLI) scheme for semiconductors and large-scale electronics manufacturing and IT hardware. PLI for large-scale electronics manufacturing and IT hardware was increased from ₹4,559.88 crore (revised estimates 2023-24) to ₹6,200 crore, in line with the interim Budget.