- As per industry experts, a display FAB unit needs a phased investment of ₹72,000 crores in a total period of 2-3 years.
- While filing applications, companies also must provide financial details like ownership model, source of funding, and technical specifications.
Amid several rounds of discussions, the Union Ministry of Electronics and Information Technology (MeitY) has finally called for expression of interest for those firms that want to commence LCD/OLED/AMOLED/QLED based display fabrication plants in the country. Earlier, before the budget, the concerned ministry has unleashed several incentives and schemes to perk-up IT and mobile hardware manufacturing.
Now, the government will chalk out a popular scheme for beginning these fabrication units and until April 30, interested companies can file their applications. According to MeitY’s notification on its website, displays account for over 25 percent of the BoM (bill of materials) in case of smartphones and over 50 percent in case of LCD / LED TVs.
It further stated that while the current demand is mostly done through imports, the upcoming FAB units will have the potential to boost this segment to grow by $15 billion by 2025. Currently, the market of display FAB is speculated around $7 billion. Apart from filing the applications within the stipulated date, companies will have to propose for power, location, land, and water requirements, etc.
India’s electronics industry body ELCINA said, “The electronic components manufacturing sector suffers from a disability of around 10 percent due to the lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development.”
The final expenses will be announced after all the interested firms submit their applications and mention what and how much incentive is required to fulfill this aim. The government intends to expand a vast range of electronic components in the nation which is why a localization schedule has been included in the currently launched PLI scheme exclusively for IT hardware manufacturing.
The government’s major focus is now to grow its export in electronics manufacturing and help manufacturers become internationally competitive through incentives. To carry out the same, imports on electronics components has been increased during the budget 2021-22. The country aims to achieve the target of $400 billion worth of electronics manufacturing by the end of FY25.