Tata Group, in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp., is set to establish India’s inaugural chip fabrication unit in Gujarat’s Dholera, according to Union Minister Ashwini Vaishnaw, following a cabinet meeting.
Tata Group, a multinational conglomerate headquartered in India, operates in various industries, including automotive, steel, information technology, and telecommunications. With a history spanning over 150 years, Tata is known for its commitment to innovation, sustainability, and corporate social responsibility. The group’s flagship company, Tata Sons, oversees the diverse portfolio of Tata companies, each a leader in its respective field.
Taiwan’s PSMC, or Powerchip Semiconductor Manufacturing Corporation, is a prominent player in the semiconductor industry. As one of Taiwan’s largest semiconductor foundries, PSMC specializes in the production of memory chips and other semiconductor products. With a focus on advanced technology and high-quality manufacturing, PSMC plays a vital role in Taiwan’s semiconductor ecosystem and the global semiconductor market.
The facility, slated to commence construction within 100 days, will require an investment of Rs 91,000 crore. The plant is designed to produce 50,000 wafers monthly, with each wafer yielding approximately 5,000 chips. This translates to an annual capacity of 300 crore chips, Vaishnaw explained. Additionally, the government has greenlit two more semiconductor units: Tata Semiconductor Assembly and Test Unit in Assam, and a joint venture involving CG Power, Renesas Electronics, and Stars Microelectronics in Sanand, Gujarat.
The total investments in these three semiconductor units will reach Rs 1,26,000 crore, the minister highlighted. India will now have four semiconductor units after these fresh permits, including the June 2023 clearance of Micron’s semiconductor assembly and test facility in Gujarat. Vaishnaw noted that a total outlay of Rs 59,000 crore has been allocated for the three newly approved units and Micron’s previously approved plant.
Vaishnaw also mentioned that the government’s PLI scheme for chips, which was announced in 2021, has an outlay of Rs 76,000 crore. While the typical construction timeline for a semiconductor unit is around three to four years, the government is striving to expedite the process, Vaishnaw added. He concluded by stating that the first chip from the Micron unit is slated to be shipped by December 2024.
