The Government of India Department of Electronics & Information Technology has selected Accenture to review investment proposals from global technology providers and investors interested in building semiconductor fabrication units in India.
Semiconductor fabrication is an essential requirement for the domestic manufacture of electronics, and the government has set a goal of attracting investments of between $7 billion and $10 billion. The government is seeking companies that can offer technology expertise and investment for setting up semiconductor wafer fabrication units in the country.
“With an investment scope of billions of U.S. dollars, this strategic project holds considerable promise for Indian manufacturing,” said Accenture Managing Director Krishna Giri, who leads the company’s health and public services business in India. “By bringing together investors, manufacturers and the government of India, this initiative will help build the critical collaboration that is needed to bridge the gap in domestic semiconductor production.”
A high-level government committee has recommended supporting investors interested in establishing semiconductor wafer fabrication units to manufacture chips in India to increase capacity for India’s growing domestic demand. India has emerged as a key center for chip design, as the country’s current electronics hardware production capacity represents 1.31 percent of global capacity. At current growth levels, domestic production of semiconductors can only meet demand of $104 billion of a demand projected to reach $400 billion by 2020.
As part of a management consulting engagement, Accenture will work in two phases to help the government assess companies interested in building semiconductor fabrication units in India. The first phase includes the development of a template for business proposals as well as a project appraisal template and a letter of intent detailing terms and conditions. Accenture will then conduct a detailed assessment of the business proposals received by Department of Electronics & Information Technology. The due diligence process could include site visits, interaction with suppliers, market surveys and feasibility studies.
“Accenture’s deep understanding of the semiconductor industry, as well as the creation of high-performance teams, will help us support the government’s objectives,” Giri said. “We look forward to working closely with the government on this landmark initiative. Over time, the electronic hardware industry has the potential to become a significant contributor to India’s GDP, much like the software industry is today.”
Ajay Kumar, joint secretary of India’s Department of Electronics & Information Technology said, “We believe that this initiative will help create an ecosystem for electronics system design and manufacturing in the country.”