Semiconductor India Photovoltaics
manufacturing company from scratch and I
have no doubt that the successful Indian
The PV market is seen as akin to a gold rush
companies that began to investigate entering
the market would have been shocked at
by some observers and the enthusiasm that
what they found.
is developing around the world for
Setting up a world class fab is very
the technology creates not just competition
expensive. Depending on the needs and the
size a new fab would cost between 1 and 5 between countries, but regions
Billion US$. On top of that they would have
quickly realised how volatile the market can
within countries entering the market
be. Entering the market with a new fab
as has been seen in India
could be disastrous if you find yourself in
the middle of an industry downturn. Any
return of investment is a risky business and
although internal chip needs may have been international market that is expected to
met, there was no way these huge Indian grow in double digits for a number of years. also submitted a $2.7 billion proposal to
companies going to enter such a risky All in all a much better opportunity that has manufacture solar photovoltaic panels and
market without experience. They still need been pursued with strong enthusiasm from the polysilicon materials required to make
to make profits and the money from the both government and industry. panels. As well as the government subsidy
government would not cover all the costs the company will benefit from further
involved. It was potentially the end of the Earlier this year the Indian government incentives with 20 per cent of capital
Indian semiconductor market before it announced the first proposals from the expenditure covered during the first 10
began. Semiconductor Policy instigated the years. This will apply for all the successful
previous year. The dozen proposals under companies benefiting from the
A spark of light review where worth US$23 billion and Semiconductor Policy who set up their
It was during these investigations that almost all were for PV manufacturing. facilities s within a regional SEZ. For
companies and the government began to Although the original policy covered a companies setting up outside the SEZs there
notice the growing global interest in broad electronics manufacturing approach, is a 25 per cent subsidy for capital
photovoltaics (PV). The Indian companies semiconductor manufacturing was definitely expenditure.
soon realised that the cost in setting up a the focus. Part of the goal of the
PV manufacturing facility where much less semiconductor policy was to foster high The Indian Government has developed a
than for semiconductors. On top of that tech engineering education growth. The number of incentives for companies to
there was an increasing global interest in understandable change in approach also invest as the policy is a key component of a
PV as the traditional costs of energy changed the skilled workforce requirements larger governmental plan for future Indian
spiralled forcing the much sought after grid that such facilities generate. economic growth. Other companies
parity where the cost of PV energy was at applying through the Semiconductor Policy
least the same as traditional sources of Semiconductors were not forgotten and include Videocon Industries, Moser Baer
electricity. PV manufacturing is a relatively indeed the largest proposal was for a PV Technologies, Titan Energy System,
simpler manufacturing process than US$4.4 billion wafer fab from Indian KSK Energy Ventures Pvt Ltd and Signet
semiconductors and does not require the company Reliance Industries. The fab will Solar Inc , Lanco Solar, Solar
same exacting parameters for material be an assembly, test, mark and packaging Semiconductor as well as Tata industries.
qualities and fault tolerance. The timing of facility rather than the original policy desire
these factors provided the Indian investors for a full manufacturing facility. This Global concerns
are much more attractive financial facility will be a key step in developing a The impact of the change of focus to PV is
opportunity with a ready made local and local manufacturing industry. Reliance has felt beyond the Semiconductor Policy with
Autumn 2008 |
www.semiconductor-india.com 15
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