India's First Modern Display Manufacturing Unit In Telangana: All You Need To Know

by Swarajya Staff - Jun 20, 2022 03:25 PM +05:30 IST
India's First Modern Display Manufacturing Unit In Telangana: All You Need To KnowA semiconductor plant in India. (Representative image)

Elest, a subsidiary of Rajesh Exports, has decided to build India's first modern display manufacturing unit in Telangana.

What this means: This comes in the backdrop of the union government's Rs 76,000 crore incentives package for domestic manufacturing of semiconductors and displays.

· It includes an investment of Rs 24,000 crore to make the most advanced AMOLED displays in the state.

· State IT and industries minister KT Rama Rao perceives this investment as a historic day for Telangana.

· He said that what was possible only in Japan, Korea, and Taiwan would now happen in Telangana.

A background: Vedanta and Elest submitted applications for Display Fabs in February 2022.

· Applicants projected investment of USD 6.7 billion and sought financial support from the Central Government of nearly USD 2.7 billion.

· Applications have been filed for setting up Gen 8.6 TFT LCD Display Fab and 6th Generation Display FAB.

· The aim is to manufacture state-of-art AMOLED display panels used in advanced smartphones.

Semicon India Programme: The Union Cabinet approved the Semicon India Programme with an outlay of Rs 76,000 crore in December 2021.

· India Semiconductor Mission (ISM) has been established as an independent institution to spearhead the Semicon India programme.

· The applicant companies under the Semiconductor and Display Fab Schemes have been acknowledged by ISM.

Why it matters: Semiconductors and displays are the foundation of modern electronics driving the next phase of digital transformation under Industry 4.0.

· Displays constitute a significant portion of the electronic product Bill of Materials (BoM).

· For instance, displays account for over 25 per cent of the BoM in the case of smartphones and over 50 per cent in the case of LCD/LED TVs.

Where India stands: India's display panel market is estimated to be around USD 7 billion (over Rs 52 thousand crores).

· It is expected to grow to about USD 15 billion (over 1.15 lakh crore) by 2025.

· India's share in global electronics manufacturing has grown from 1.3 per cent in 2012 to 3.6 per cent in 2019, as per industry estimates.

· The domestic production of electronic goods has increased substantially from Rs 1.9 lakh crore in 2014-15 to Rs 4.97 lakh crore in 2020-21 (industry estimates) at a CAGR of 17 per cent.

Why this is not so great: Domestic value addition is estimated to be in the range of 10 per cent to 30 per cent only.

· Growth in manufacturing so far has primarily been on final assembly using imported components, sub-assemblies/parts, etc.

· This is due to the country's lack of a robust semiconductor and display manufacturing ecosystem.

What is being done: Semicon India programme is facilitating capital support and technological collaborations.

· The union government shall extend financial support of up to 50 per cent of project cost (subject to a ceiling of Rs 12,000 crore per display fab) on a pari-passu basis.

· Applicants need to be eligible and have the technology as well as capacity to execute such highly capital intensive and resource incentive projects.

· GoI will work closely with the State Governments to establish high-tech clusters with requisite infrastructure on the land, semiconductor-grade water, high-quality power, logistics and a research ecosystem.

Bottomline: The Union government currently aims to approve applications for setting up at least two Display Fabs in the country, and Elest's investment in Telangana could be part of it.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.

Latest Articles

    Artboard 4Created with Sketch.