The government is providing 50% fiscal support under the Rs 76,000-crore semiconductor incentive scheme for display fabrication.
The India Cellular and Electronics Association (ICEA) emphasized on Tuesday the need for special attention to display manufacturing in India, which is currently the third-largest consumer of display products globally.
Despite the government offering 50% fiscal support under the Rs 76,000-crore semiconductor incentive scheme for setting up display fabrication units, none of the three applications received for display fabs have been approved so far.
“We have not made significant progress beyond display assembly. Displays constitute a major 15% to 20% of the Bill of Material, comparable to logic, memory, and semiconductors. This is a significant concern,” said Pankaj Mohindroo, chairman of ICEA.
The association, which includes companies like Apple, Foxconn, Lava, and other Chinese handset and electronics companies, stresses the importance of focusing on this sector to establish India as a robust display manufacturing hub.
Mohindroo added, “This sector needs special attention, and we are determined to make India a strong display manufacturing nation.”
Experts believe that display manufacturing in India offers a unique opportunity to attract international companies looking to diversify their supply chains. This would not only meet domestic demand but also enhance exports from India.
According to ICEA, the demand for displays in India is primarily driven by mobile phones, among other devices such as televisions, notebooks, tablets, and desktops.
The total demand for displays in the country increased to 338.4 million units in 2023, up from 303.7 million units in 2022, with mobile phones accounting for 310 million display units in 2023. The overall display demand in India is expected to reach 383.5 million units by 2026.