Union Cabinet approves Three new Semiconductor units in India
Prime Minister Narendra Modi, leading the Union Cabinet, has granted approval for the establishment of three semiconductor units as part of India's efforts to develop semiconductor and display manufacturing ecosystems. These units are slated to be set up in Dholera, Gujarat; Morigaon, Assam; and Sanand, Gujarat. Ashwini Vaishnaw, the Union Minister for Electronics and Information Technology, emphasized that construction for all three units will commence within the upcoming 100 days. He also underscored the significance of establishing a semiconductor unit in Assam.
"All three units will start construction within the next 100 days. Northeast will get its first semiconductor Unit in Assam. Investment in the Assam unit will be 27,000 crore. Chips produced from here will be used by the big automobile companies across the globe. Whenever we used to talk about investment in the Northeast, the concept of technological investment was never discussed. This tradition has been changed by Prime Minister Modi", Vaishnaw said.
Tata Electronics Private Limited (TEPL), in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan, will establish a semiconductor fabrication facility (fab) in Dholera, Gujarat. The investment for this fab is set at Rs 91,000 crore, with a planned capacity of 50,000 wafer starts per month (WSPM). This facility will specialize in producing high-performance compute chips utilizing 28 nm technology. It will also manufacture power management chips catering to various sectors such as electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, and power electronics, among others, as stated in the press release.
Additionally, Tata Semiconductor Assembly and Test Pvt Ltd ("TSAT") will establish a semiconductor unit in Morigaon, Assam, with an investment of Rs 27,000 crore. This unit will cater to segments including automotive, electric vehicles, consumer electronics, telecom, and mobile phones, with a daily capacity of 48 million units. CG Power, collaborating with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, is establishing a semiconductor facility in Sanand, Gujarat, with an investment totaling Rs 7,600 crore. This unit will focus on producing chips tailored for consumer, industrial, automotive, and power applications, with a daily capacity of 15 million units.
"Within a very short time, India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will be established in India. India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India with today's announcement", it said.
The establishment of these units is expected to create approximately 20,000 direct jobs in advanced technology fields, along with around 60,000 indirect employment opportunities. They will significantly boost job growth in sectors such as downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other industries reliant on semiconductor technology, as stated in the release.
The Programme for the Development of Semiconductors and Display Manufacturing Ecosystem in India was officially announced on December 21, 2021, with a total budget allocation of Rs 76,000 crore. "In June, 2023, the Union Cabinet had approved the proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit", the release added.