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“DLI will help 20+ domestic semiconductor design companies”

DLI will help 20+ domestic semiconductor design companies and What has been the impact of various government initiatives on the telecom.

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Shubhendu Parth
New Update
domestic semiconductor


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The Made in India telecom equipment is slowly making inroads in the global market. How will you describe the change?

In the last five years, India has undergone a major technological transformation and emerged as the second fastest-growing digital economy, with Indian companies developing expertise in high-quality manufacturing across the value chain, from smartphone manufacturing to network equipment and optical fibres. According to the latest data for 2022, India holds a 21% share of global mobile data traffic and is second only to China.

The Union Cabinet in India has allocated Rs 76,000 crore for supporting the development of a semiconductor and display manufacturing ecosystem.

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The continuous increase in data demand is boosting smartphone sales. The Indian smartphone market was valued at USD 139 billion in 2021 and is expected to grow at a CAGR of 10.5% to USD 281 billion by 2028. The local optical fibre and accessories market is also expected to reach USD 1.66 billion by 2026, growing at a CAGR of 17.2% between 2019 and 2026. This provides an opportunity for the industry to emerge as the champion of the government’s Make in India initiative, catering not only to the domestic market but also to export markets as the government negotiates trade agreements with major export destinations.

What has been the impact of various government initiatives on the telecom equipment manufacturing sector?

In terms of subscribers and Internet users, India is the world’s second-largest telecommunications market. The Government of India intends to further strengthen the telecom sector by increasing domestic manufacturing, investment, and exports of telecom and networking products. India currently imports all chips, and the market is expected to reach USD 100 billion by 2025, up from USD 24 billion today. However, India has recently launched several initiatives to increase domestic semiconductor chip manufacturing.

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The Union Cabinet has allocated an amount of Rs 76,000 crore for supporting the development of a semiconductor and display manufacturing ecosystem. As a result, significant incentives would be provided to firms to design chips. The country has also launched the Scheme for Promoting Manufacturing of Electronic Components and Semiconductors (SPECS) to encourage the production of electronic components and semiconductors. Besides, it has also unveiled the Design Linked Incentive (DLI) Scheme that will help at least 20 domestic semiconductor design companies achieve a turnover of more than Rs 1,500 crore in the next five years. India’s semiconductor consumption is expected to exceed USD 80 billion by 2026 and USD 110 billion by 2030.

Please share details of the Make-in-India initiatives taken up by the company and the products that it manufactures in India.

Delta has a wide portfolio of products in the telecom domain including high-efficiency power conversion, power management and conditioning, power storage like lithium-ion batteries, and cooling solutions for outdoor applications like renewable and hybrid energy solutions. With a nationwide service network, Delta is powering telecom sites across India. We have been a partner in the journey of all Indian operators and tower companies for years, enabling them to build reliable and stable infrastructure.

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Delta Electronics has been producing the flagship DPR4000W rectifier for telecom applications locally in India for the last three years.

The company is also a pioneer in providing power solutions to the majority of the telecom infrastructure players in India. Our solutions are 5G-ready to support India’s 5G growth. The 5G network topology also requires a large number of small cells and in-building solutions. Delta has a power-efficient portfolio and large capacities to meet roll-out targets, including one of the largest service networks in India with 800 engineers for after-sales support. We manufacture several core components at the Krishnagiri Factory in Tamil Nadu while the final fabrication of power systems and solutions happens at the Rudrapur factory in Uttarakhand.

Delta Electronics India has been producing the flagship DPR4000W rectifier for telecom applications locally for the last three years. Besides, we are continuously qualifying new products for localisation requirements and have targets of producing all core components like rectifiers, inverters, lithium-ion batteries, and controllers in the country.

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And what are the company’s plans for the future, both in terms of manufacturing in India and exports from the country?

We are currently implementing a USD 500-million investment in Krishnagiri for a new manufacturing facility. The new facility will provide us with cutting-edge technology to meet domestic and global demand. Our investments in Tamil Nadu are consistent with the company’s goal of supporting the Make in India initiative. In addition, we are investing in a new R&D building and headquarters in Bengaluru. In the short term, we want to accelerate our top-line growth by focusing on key segments such as electric vehicles, datacentres, and industrial automation, all of which have significant potential in India. We are already pioneers in telecom power solutions and display solutions. Furthermore, we wish to enter new segments and businesses in India because we have a strong inheritance of cutting-edge technology and power electronics from Delta worldwide.

Rajesh Kaushal

Rajesh Kaushal
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Rajesh Kaushal

Business Head- Communication and Information Solutions, Delta Electronics India

By Shubhendu Parth

shubhendup@cybermedia.co.in

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