Balancing Act: Government Equity in Semiconductors

In a conversation with ANI, Parag Naik of Saankhya Labs and Tejas Networks highlighted the complexity of government equity in semiconductor firms. He emphasized cautious evaluation of benefits and challenges, with a focus on safeguarding Indian interests without stifling private investments and innovation through excessive control.

In an exclusive interview with ANI, Parag Naik, CEO of Saankhya Labs and Executive Vice President at Tejas Networks, expressed concerns over government ownership in semiconductor companies. He noted the complexity of this issue, citing the U.S. government's acquisition of a 10% stake in Intel as a case in point.

Naik argued that while government involvement could potentially offer stability, it also raises concerns over control and bureaucracy. Drawing parallels to China's model, he highlighted the pros and cons, suggesting that government equity might transform a company into a public sector entity, leading to regulatory challenges.

Advocating for a strategic approach, Naik proposed the government focus on regulatory frameworks that protect domestic interests without direct ownership. He cautioned that such interventions could stifle private investment and introduce cumbersome compliance that limits startups' operational flexibility.

(With inputs from agencies.)