India Semiconductor Association suggests extending India semiconductor policy to 2015

India Semiconductor Association (ISA) has requested the Government of India (GOI) to extend the benefits of semiconductor policy announced in 2007 to March 2015, where the present deadline is Mar 2010.

ISA said the global economic slowdown has severely impacted the semiconductor industry leading to piling up of inventories and reduced capital expenditure. However in 2010 the semiconductor market is expected to grow by 20% as per latest estimations by Gartner.

ISA also suggested to reduce the threshold limit for certain categories of eco-system units such as ATMPs, optical LEDs, storage devices, LCDs, FPD, solar Photovoltaics, fuel cells, micro and nano technology products (as defined in the SIPS (Special Incentive Package Scheme) to attract investment in this sector.

The other recommendation include establishing 'National Electronics Mission', promoting existing manufacturing clusters and create new ones, encouraging "Made for India" goods, creation of a R&D fund, and rationalization of tax structure.

Semiconductor industry is eagerly looking forward to the 2010-11 budget announcement hoping for some creative policies.