Biden’s CHIPS good for SMEs

Elisha Pulivarty

Rama Krishna Sangem

US President Joe Biden’s recent policy initiative of CHIPS (Creating Helpful Incentives for Producing Semiconductors) is a good opportunity for SMEs (small and medium enterprises), said Elisha Pulivarty, CEO of US India SME Council, Washington DC.  Once leader of semiconductors manufacturing, the US later ceded the ground to China, but  now wants to regain the top slot.

Elisha, told Excel India on phone from the US that: “President Biden’s CHIPS initiative amounting to $ 53 billions is a huge opportunities for the SMEs from both the countries. Dozens of big and medium high technology firms are going to enter the sector in the coming years”. Elisha’s statement comes against the backdrop of upcoming Incredible Inc awards function by the Council in Bangalore on September 24.

The Biden-Harris administration has taken the CHIPS initiative to trigger massive economic activity that now depends on the supply chain mechanism based out of China. Biden signed the CHIPS Act defining Chip manufacturers. “Chip makers must be a private entity, or a consortium of private entities or a consortium of public- private entities“. The law covers fabrication, design, assemble, test, advanced packaging or research and development o Chips.

Elisha expressed happiness over a similar initiative by the Narendra Modi government too in India for promoting making  of semiconductor chips in the country. India has recently announced an initiative to  encouraging making of chips with an outlay of around $ 10 billion (around to Rs 80,000 crore). China too rolled out a similar incentives package worth $ 16 billion.

As per the CHIPS Act, the eligible entities will get 25 per cent investment tax credit in the US. The US India SME Council will encourage, assist, guide and lobby for small and medium enterprises that enter this key and critical area of chips making, vital for the electronic industry. “Entrepreneurs from US and India can benefit out of this present scenario where the governments are committed to big growth in this sunrise sector,” said Pulivarty.

India’s ministry of IT and electronics (MeitY) has called for applications from SME startups and others under a PLI (production linked incentives) scheme to make India a semiconductor hub. Indian government also aims to train 85,000 engineers in this area of 175 application specific integrated circuits, among others. The upcoming Incredible Inc awards function will cover these developments, said Elisha Pulivarty.



Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at