DPIIT plans to introduce quality control system for semiconductor and deep technology companies within 2-3 months
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DPIIT plans to introduce quality control system for semiconductor and deep technology companies within 2-3 months

The Department for Promotion of Industry and Internal Trade (DPIIT) intends to develop clearer guidelines and a policy framework over the next two to three months. This is being done to address issues related to Quality Control Orders (QCO) that companies in the semiconductor and other deep technology sectors are facing.

Quality Control Orders require certain products to comply with Indian standards, and certification is carried out by the Bureau of Indian Standards (BIS). During a speech at SEMICON India 2026, Deputy Secretary of DPIIT, Dr. Sumit Jaranghal, stated that the department is working on a mechanism to resolve situations where spare components used in complex manufacturing equipment fall under BIS and QCO requirements administered by different ministries.

Jaranghal assured that a clear policy and guidance would be presented within two to three months so that no company suffers due to the QCO system. He noted that the problem is less pronounced for new manufacturing equipment but may become complicated when importing spare parts.

He cited an example of one company that found about 1400 spare components falling under BIS-related requirements. The complexity lies in the fact that applicable standards and regulatory requirements may fall under the jurisdiction of various administrative ministries, complicating compliance for enterprises using complex manufacturing equipment.

DPIIT is developing a structure whereby the relevant specialized ministry can identify responsible departments for individual components upon a company's request and coordinate the necessary regulatory servicing. The department is also examining whether DPIIT should act as the authorized body in such cases or if the powers should remain with the respective administrative ministries.

Jaranghal added that similar difficulties are experienced by companies in other high-tech and deep sectors. He emphasized the need for flexibility while these industries are still in the developmental stage and domestic production of specialized components remains limited.

These comments were made during a panel discussion on regulatory support for semiconductor manufacturing. Participants included representatives from the Customs Department, the Ministry of Commerce and Government of Gujarat, and industry experts who discussed bottlenecks related to imports, standards, SEZ rules, and permits. The panel moderator, MeitY Deputy Secretary Sushil Pal, also proposed a mechanism to ensure simplified regulatory servicing for companies supported under the India Semiconductor Mission and their supply chain partners.

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The Minister of Electronics and Information Technology, Ashwini Vaishnaw, on September 17, 2026, unveiled six key areas that will define Semicon 2.0—India's second phase of the semiconductor program. The presentation took place at the inaugural session of Semicon India 2026, held in Yashoboomi in New Delhi.

Speaking before Prime Minister Narendra Modi's address, he characterized the first phase as a 'measured and calibrated' effort aimed at building the industry's foundation in the country, noting that the next round would develop this sector based on the achieved fundamentals.

The India Semiconductor Mission was established about five years ago, and 12 projects were approved under the first phase. Currently, five manufacturing facilities are operating commercially after Suchi Semicon in Surat and CDIL in Mohali joined companies like Micron, Kaynes, and CG Semi at the same event.

The Prime Minister stated that the first phase was estimated at approximately $8 billion, while the second phase is targeted at up to $13.5 billion. Vaishnaw noted that over 28 countries participated in this year's conference, indicating an expansion of the supplier base.

The first pillar is design. In the first phase, over 105 startups participated in the design program, with about 20 attracting around ₹800 crore in venture funding. The new goal is to ensure the presence of at least 200 startups and companies developing chips in India for the entire spectrum of semiconductor needs.

The second pillar is machinery and materials, which includes capital equipment, maintenance services, chemicals, and gases. Vaishnaw thanked Applied Materials for its $5 billion commitment announced at the same session, emphasizing that this significantly contributes to job creation.

The third pillar focuses on increasing the number of fabrication plants (fabs), covering displays, memory, silicon, interconnects, and logic. He stated that more is better, as the ecosystem develops around fabs and creates a multiplier effect. The fourth pillar is advanced packaging, with a 3D packaging block already being prepared in Odisha, and plans to open additional units.

The fifth pillar is research and development. The Minister clarified that projects must be applied, meaning collaborative work between industry and academia, rather than isolated research. He invited industry participants to propose projects they wish to implement.

The sixth pillar is manpower. The first phase aimed to train 85,000 design engineers over ten years, and 70,000 have already been trained in four years. Over 400 universities are now equipped with EDA tools from Cadence, Siemens, and Synopsys, and student designs are being tested at the Semiconductor Laboratory in Mohali. Semicon 2.0 adds the goal of training one hundred thousand technicians for cleanrooms and production floors.

Vaishnaw recalled the Prime Minister's early guidance: 'Don't think about the fab, think about the ecosystem.' A fab is an enterprise where wafers are converted into chips, and it cannot function without equipment manufacturers, gas and chemical suppliers, maintenance firms, packaging units, and a constant stream of skilled personnel.

The countries dominating chip manufacturing built these surrounding layers over decades. Semicon 2.0 aims to attract them to India simultaneously with the fabs so that every new installation has local suppliers and workers instead of importing all components.

Vaishnaw called this the second step on the long road to Viksit Bharat. Immediate tasks include how quickly applied R&D projects can be defined jointly with industry, and whether the technician training program can produce ready-to-work cleanroom personnel while the 12 approved projects transition from construction to production. The detailed structure of incentives for the second phase will determine how far equipment and materials players can turn interest into actual production capacity.

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The official representative, who wished to remain anonymous, specified that the software procurement is complete, and the deployment will be carried out by December to ensure DPDP compliance. He also noted that some equipment and software have been purchased, and installation is scheduled for December.

As one of the country's largest banks, SBI processes significant volumes of financial and customer data during its banking operations, making data security and privacy a critical part of its technology and compliance architecture.

The acquisition and installation of this technological infrastructure aim to strengthen the bank's systems as it prepares to implement the new data protection regime. This step comes as banks and other organizations handling personal data prepare their processes and systems to meet the requirements of the Digital Personal Data Protection Act of 2023 and the DPDP Rules of 2025.

The DPDP Act establishes obligations for entities processing digital personal data, including requirements for lawful processing, notification, and consent acquisition, while also granting individuals rights over their personal data. The government notified the DPDP Rules in November 2025, with various provisions coming into effect in phases. Key provisions regarding the obligations of data fiduciaries are set to come into force 18 months after the rules are published.

Meanwhile, the bank's Managing Director, Ashwini Kumar Tewari, stated that the bank expects to begin processing cheques using Artificial Intelligence (AI) starting in March 2027. Initially, the technology will be applied to cheques valued up to ₹15,000.

Tewari announced at the Global Fintech Fest 2026 that they may start processing cheques with AI by March 2027, initially considering cheque amounts up to ₹15,000. AI-based processing will initially cover lower-value cheques, and the bank may potentially expand the scope later. Furthermore, SBI has implemented Large Language Models (LLMs) to automate cheque processing.

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