【行业报告】ITIF-印度半导体准备情况评估报告的初步结果（英）-2023.6_市场营销策划_202.docx

ITirINFORMATIONTECHNO1OGY&INNOVATIONFOUNDATIONInitia1FindingsofINDIASEMICONDUCTORREADINESSASSESSMENTREPORTABOUTTHEREPORTOnJanuary31,2023,IndiaandtheUnitedStatesannouncedthejointinitiativeonCritica1andEmergingTechno1ogy(iCET)zwhichcommittedthetwocountriestoexpandstrategictechno1ogypartnershipsanddefenseindustria1cooperationbetweentheirnations'businesses,academicinstitutions,andgovernmentagencies.AspartoftheiCETztheSemiconductorIndustryAssociationintheU.S.andIndia'sIndiaE1ectronicsSemiconductorAssociation(IESA)zagreedtoundertakea''readinessassessment“toidentifynear-termindustryopportunitiesandfaci1itatethe1onger-termstrategicdeve1opmentoftheircomp1ementarysemiconductorecosystems.TheInformationTechno1ogyandInnovationFoundation(ITIF)zaWashington,DC-basedscienceandtechno1ogypo1icythinktank,wascommissionedtoundertakeauthorshipofthisassessment,andinMay2023anITIFrepresentativeundertookafact-findingtriptoIndiaforthispurpose.INITIA1FINDINGSIndiap1anstoexpanditsg1oba1marketshareacrosseachkeyphaseofthesemiconductorThereisevidencethatIndianpo1icyismovingtheneed1eintherightdirection,asinrecentyearsthenationhasdemonstratedconsistentimprovementing1oba1competitivenessindicessuchastheWor1dInte11ectua1PropertyOrganization(WIPO)G1oba1InnovationIndex(GII)zthe1ogisticsPerformanceIndex(1PI)zandtheWor1dBankEaseofDoingBusinessreport.Co11ective1y,thisref1ectsarecognitionthatwhi1eitisvita11yimportantthatnationscraftsemiconductorcompetitivenessstrategiesandextendeffectiveincentivestoattractsemiconductor-sectoractivity,themostimportantdeterminantofanation's(and/orstate's)abi1itytoattracthigh-techinvestment(whetherfromdomesticorforeignsources)isthequa1ity,stabi1ity,andpredictabi1ityofthebusinessenvironmentitoffers.Manynationshaverecent1yintroducedstrategiesandincentivepackagestoattractsemiconductormanufacturingactivitytheseinc1udetheCHIPSandScienceActintheUnitedStates,theEUChipsActinEurope,andtheK-Be1tStrategyinKoreayetIndiaofferssomeofthemostattractiveincentivesg1oba11y.Intota1,Indiaisoffering$30bi11ioninsupportforsemiconductorsandre1atedindustries,inc1uding$10bi11ionforthesemiconductor/disp1aysector;$7bi11ionfore1ectronicsmanufacturing;and$13bi11ionforre1atedsectorssuchasso1arphotovo1taicce11s,e1ectricandotherautomotivevehic1es,andwhitegoodswhichmattersbecausethesewi11bekey,growingsectorsoftheIndianeconomy(a1ongsideICTsande1ectronics)demandingconsumptionfortheanticipatedincreasesinIndiansemiconductoroutput.Indianpo1icymakersrecognizethatthestab1e,secure,anddependab1esupp1yofe1ectricityisafoundationa1startingpointtowardattractingsemiconductormanufacturinginvestment.Tothisend,theIndianfedera1governmenta1ongsideIndianstateshasmadeconsiderab1einvestmentsinincreasinge1ectricityproductionanddeve1opingre1iab1eandredundante1ectricitygrids.India'sinsta11edcapacityof410gigawatts(GW)isnowthewor1d'sthird1argest,withanever-greatersupp1y,at1east172GWzbeingrenewab1epower.Indicativeoftheincreasingqua1ityofIndia'se1ectricgridzIndia'sSemiconductor1aboratoryhasnotsustainedapoweroutagesince1983.Severa1regions-suchasDho1erazinGujaratzwhichisseekingtoestab1ishasemiconductorc1usteraswe11asMysuruzinKarnatakaa1sohigh1ightedsignificantrecentimprovementstotheirrespectivewater/sewer,port,airport,roadzandhigh-speedrai1infrastructure.Indianpo1icymakersrecognizethatregu1atory,taxzandcustomsenvironmentsareimportantconsiderationsinattractingg1oba11ymobi1ehigh-techinvestment.Tothisend,Indianpo1icymakershavemadestridesinsettingupsing1e-windowc1earanceforbusinesses(i.e.India'sNationa1Sing1eWindowSystem(NSWS)digita1p1atform),butmoreprogressisneeded.E1sewherezIndiahasworkedwithsemiconductordesignfirmsande1ectronicsmanufacturerstodesignadvancedpricingagreements(APAs)zagreementsbetweentaxpayersandnationa1taxauthoritiesdeterminingthetransferpricingmethodo1ogyforpricingtaxpayers7internationa1transactionsforfutureyears.InJu1y2017zIndiasignificant1ysimp1ifiedandstream1ineditstaxsystemwiththeintroductionofthegoodsandservicestax(GST),essentia11yadestination/consumption-basedtaxthatrep1acedoneofthewor1d'smostcomp1icatedorigin-basedindirecttaxsystems.Stabi1ity,certainty,andefficiencyareimportantattributesofnations'andstates'taxenvironmentsthatenterprisesassesswhenmakingg1oba11ymobi1einvestmentdecisions.Whi1eIndiabringsanumberofstrengthstothetab1eandisa1readyhigh1ycompetitiveinsemiconductorresearchanddesign,India'scapabi1itiesin1arge-sca1emanufacturingarecurrent1y1imited,butpoisedtogrowsignificant1y.Manufacturingsemiconductorsisoneofthemostcomp1exmanufacturingendeavorshumanityhaseverundertaken,andtherea1ityisIndia'sexperienceinthisfie1dis1imited.ThisiswhytheGovernmentofIndia'seffortstojump-startsemiconductormanufacturingaresoessentia1andtheestab1ishmentoftheIndiaSemiconductorMission(ISM)andthere1atedProduction-1inkedIncentives(P1I)Schemeissotime1y.Further,movingbitswithinthesemiconductorsupp1ychainisasimportantasmovingatomsacrossg1oba1supp1ychains,meaningdataandinformationshou1dbenomoredutiedthankeyinputs,components,orfina1goodsinthissector.Thisi