India Approves 3 New Semiconductor Units with ₹125,600Cr Investment

Feb 29: In a significant move towards strengthening India’s semiconductor and display manufacturing capabilities, the Union Cabinet, led by Prime Minister Shri Narendra Modi, has given the green light for the establishment of three semiconductor units under the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative. The decision, aimed at enhancing India’s technological prowess and self-reliance, marks a crucial milestone in the nation’s journey towards becoming a global player in semiconductor production.

The approved units, set to commence construction within the next 100 days, signify a major stride in the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was initially notified on December 21, 2021, with an allocated budget of Rs. 76,000 crore.

One of the approved units includes a Semiconductor Fab with a substantial capacity of 50,000 wafer starts per month (WSPM). Tata Electronics Private Limited (TEPL), in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan, will spearhead this endeavor, investing a whopping Rs. 91,000 crore. The fab, to be erected in Dholera, Gujarat, will focus on producing high-performance compute chips and power management chips for diverse applications such as electric vehicles, telecom, defense, automotive, consumer electronics, and power electronics.

Another unit, a Semiconductor ATMP (Assembly, Testing, Marking, and Packaging) facility, will be established in Assam by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) with an investment of Rs. 27,000 crore. This unit, located in Morigaon, Assam, will cater to various sectors including automotive, electric vehicles, consumer electronics, and telecom, boasting a capacity of 48 million chips per day.

Furthermore, a Semiconductor ATMP unit for specialized chips is on the cards, as CG Power, in collaboration with Renesas Electronics Corporation from Japan and Stars Microelectronics from Thailand, is slated to set up shop in Sanand, Gujarat, with an investment of Rs. 7,600 crore. This unit will manufacture chips tailored for consumer, industrial, automotive, and power applications, with a daily capacity of 15 million chips.

India to Witness Construction of Three Semiconductor Units in Next 100 Days

The strategic significance of these units cannot be overstated. Not only do they herald the establishment of a robust semiconductor ecosystem in India, but they also pave the way for the development of indigenous chip fabrication capabilities and advanced packaging technologies. Moreover, these initiatives are poised to generate substantial employment opportunities, with an estimated 20 thousand direct advanced technology jobs and around 60 thousand indirect jobs expected to be created.

With India’s burgeoning expertise in chip design and the establishment of these semiconductor units, the nation is poised to emerge as a formidable force in the global semiconductor landscape. These developments underscore India’s commitment to fostering innovation, self-sufficiency, and economic growth in the technology sector.

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