Going soft on hardware

The Centre is all set to come out with a slew of sops for promoting the hardware industry, said Union Finance Minister P Chidambaram.

Launching the new integrated chips (IC) developed by the SPEL Semiconductor Ltd at Maraimalai Nagar, near here, he said the government is making out all out efforts to convert India as a hub for hardware industry and added that very soon the Central government would announce a package for hardware manufacture industry.

On the prospects of hardware sector, he said that it is a fast developing industry which would scale new heights in the coming years. He expressed hope that the industry would find ways and means for establishing chip manufacturing unit in the country.

Emphasising the importance of research and development, he said that research and development is the heart of any technical business. He said, 'How long India can remain a knowledge borrowing country ?'

It was time for India to become a knowledge-inventing, knowledge-producing and knowledge-sharing society, he opined.

Referring to the contributions made by Indians living abroad, he suggested that a conducive climate should be created for them here so that they could return back to their home country to continue their success story.

While complimenting the contribution of software exports in the country's economy, he had a word of caution about giving over emphasis on this sector which he felt would lead to adverse impact.

Chidambaram later unveiled the new expansion plan of the SPEL Semiconductor Ltd worth $ 250 million at the function and handed over the new package of chips to SPEL's customers.

In his address Ar Rm Arun, vice chairman, SPEL Semiconductor Ltd said, 'SPEL is all set to move towards new technology and package scalability. The company under the expansion would grow from the current $ 250 million to over 5.6 billion per annum. In this process, we would be enhancing our order book from the existing customers while widening the customer base as well.'

Earlier speaking to mediapersons Arun, said, the SPEL had initiated necessary action to set up a special economic zone (SEZ).

T S Narayanaswamy, chairman, Indian Overseas Bank, A C Muthiah, chairman, SPEL Semiconductor Ltd and Sam Varghese, CEO, SPEL Semiconductor Ltd were among those who were present at the function.