GOI‘s quest for semiconductor self-reliance receives a significant boost with the government’s approval of a substantial $15 billion (₹1.26 lakh crore) investment in the construction of three semiconductor plants. This includes a proposal from Tata Group to establish the country’s first major chip manufacturing facility.
These plants, approved by GOI, set to begin construction within the next 100 days, are part of the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative, initiated in December 2021. The initiative has already supported US memory maker Micron in establishing a $2.75 billion assembly facility in Gujarat.
The three semiconductor facilities that have been approved include a Semiconductor Fab capable of producing 50,000 wafer starts per month, a Semiconductor assembly, testing, monitoring, and packing (ATMP) unit located in Assam, and a Semiconductor ATMP unit for specialized chips.
IT Minister Ashiwini Vaishnaw stated, “This capacity is significant and will cater to about eight sectors. The chips manufactured in this fab will be used in high-power computers for laptops and servers, mobile phones, various electronics items, display items, electric vehicles, regular bikes and cars, industrial applications such as large machinery, and the controls of such machinery, as well as in telecom.”
Tata Electronics, in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan, is set to establish a semiconductor chip fab in Dholera, Gujarat. This fab represents a $3 billion (₹91,000 crore) investment. Additionally, Tata Electronics has engaged in discussions with United Microelectronics Corp. Regarding the partnership with Tata, the minister emphasized the complexity of such fabs, noting that they require time.
However, he mentioned that GOI has set a target similar to Micron, where construction began within 90 days of approval. The new target is to start construction within the next 100 days, emphasizing a focused effort to set up the fab swiftly. The minister also highlighted that the chips produced in this foundry will be utilized both within India and for export purposes.
The new facility will focus on manufacturing mature chips, which utilize 40-nanometer or older technology and are extensively used in various sectors like consumer electronics, automotive, defense systems, and aircraft. The semiconductor ATMP unit in Assam will be established with an investment of ₹27,000 crore.
Additionally, Vaishnaw mentioned that CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will establish a semiconductor unit in Sanand, Gujarat, with an investment of around ₹7,600 crore. This GOI’s initiative is expected to create direct employment opportunities for 20,000 individuals in advanced technology, and 60,000 additional indirect jobs.
