DPIIT to unveil QCO framework for semiconductor, deeptech firms in 2-3 months

The Department for Promotion of Industry and Internal Trade (DPIIT) is set to unveil a framework and clearer guidelines within two to three months to address Quality Control Order (QCO) challenges faced by semiconductor and deeptech companies. QCOs require specific products to meet Indian standards, with certification overseen by the Bureau of Indian Standards.

At SEMICON India 2026, DPIIT Joint Secretary Dr Sumeet Jarangal explained that the department is developing a mechanism to handle cases where replacement components for advanced manufacturing equipment fall under BIS and QCO requirements administered by different ministries. While the issue is less severe for new production machinery, it becomes more complex when companies need to import replacement components.

For instance, one company encountered around 1,400 replacement components covered by BIS-related requirements. The main challenge lies in the varying standards and regulatory responsibilities falling under different administrative ministries, complicating compliance for sophisticated manufacturing facilities. DPIIT is currently working on a framework that would allow the relevant line ministry to identify, upon request from a company, the departments responsible for individual components and coordinate the necessary regulatory treatment.

They are also exploring whether DPIIT should serve as the central point of contact for such cases or if the responsibility should stay with the respective administrative ministries. Jarangal noted that similar issues are affecting companies in other high-tech and deeptech sectors. He emphasized the need for flexibility as these industries continue to develop, and domestic production of specialized components remains limited.

The remarks were made during a panel discussion on regulatory enablement for semiconductor manufacturing, where officials from Customs, the Department of Commerce, and the Gujarat government, along with industry representatives, discussed challenges related to imports, standards, SEZ rules, and clearances. MeitY Joint Secretary Sushil Pal, who facilitated the conversation, also called for a streamlined regulatory treatment mechanism for companies supported by the India Semiconductor Mission and their supply-chain partners.