In a move to enhance India’s semiconductor ecosystem, Prime Minister Narendra Modi on Wednesday laid the foundation stone for three new semiconductor plants – two in Gujarat and one in Assam. Tata Group will set up two out of the three plants.
PM Modi participated virtually in the event ‘India’s Techade: Chips for Viksit Bharat’, where he announced the establishment of the three semiconductor facilities with a planned investment of about Rs 1.25 lakh crore.
Last month, the Union Cabinet, chaired by PM Modi, approved the establishment of three semiconductor units under the Development of Semiconductors and Display Manufacturing Ecosystems in India programme. The programme, notified on December 21, 2021, carries a total outlay of Rs 76,000 crore.
The semiconductor industry in India is still in its nascent stages, with several local and multinational companies keen on tapping into its vast potential.
The three semiconductor units for which the foundation stone were laid are:
With a planned investment of Rs 91,000 crore, Tata Electronics Private Limited (“TEPL”) will set up a semiconductor fabrication plant in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan, in Dholera, Gujarat. The capacity of the Dholera unit will be 50,000 wafer starts per month (WSPM).
CG Power, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up a semiconductor unit in Sanand, Gujarat. This unit will be set up with an investment of Rs 7,600 crore. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.
Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam. With a production capacity of 48 million chips per day, the facility is being built at a cost of Rs 27,000 crore. Segments that will be covered are automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
The semiconductor units are projected to generate 20 thousand advanced technology jobs and about 60 thousand indirect jobs.
These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-based industries.
Meanwhile, American chip maker Micron’s high-end semiconductor fabrication plant in Gujarat’s Sanand, which is India’s first, is expected to be operational in late 2024. Micron Technology has also planned an investment of $2.5 billion (INR 22,500 crore) to establish an ATMP (assembly, test, marking, and packaging) facility in Gujarat’s Sanand GIDC-II.
