The Union Cabinet has recently given the green light to three significant semiconductor plant proposals, marking a significant stride towards bolstering India’s semiconductor manufacturing capabilities. These proposals, estimated to cost around Rs 1.26 lakh crore, include two projects in Gujarat and one in Assam.
One of the prominent projects involves the establishment of India’s inaugural semiconductor fabrication plant (fab) by Tata Electronics in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) in Gujarat’s Dholera region. With an investment of Rs 91,000 crore, this venture aims to have a monthly capacity of 50,000 wafers. It is expected to create employment opportunities for 26,000 individuals directly and approximately 1 lakh indirectly, according to IT Minister Ashwini Vaishnaw.
Additionally, the Cabinet has approved the setup of a chip assembly and testing unit by Tata Semiconductor Assembly and Test Pvt. Ltd in Assam, with an investment of Rs 27,000 crore. Furthermore, CG Power, in collaboration with Japan’s Renesas Electronics Corp. and Stars Microelectronics of Thailand, will establish a semiconductor unit in Gujarat’s Sanand, with an estimated investment of Rs 7,600 crore.
These initiatives are seen as crucial steps towards fortifying India’s semiconductor ecosystem. By focusing on chip fabrication and advanced packaging technologies, these units are poised to create employment opportunities and accelerate growth in various sectors, including automotive, electronics, telecom, and industrial manufacturing.
India’s semiconductor landscape is rapidly evolving, with an emphasis on indigenous capabilities. These endeavors are expected to solidify India’s position in chip design and fabrication while fostering the development of advanced packaging technologies within the country.
