India's drive towards semiconductor self-sufficiency receives a significant boost as the government approves a massive $15 billion (₹1.26 lakh crore) investment in the establishment of three semiconductor plants, including a proposal from Tata Group to build the country’s first major chipmaking facility.
These units, slated to commence construction within the next 100 days, will be a part of the 'Development of Semiconductors and Display Manufacturing Ecosystems in India' initiative, launched in December 2021. The fund has already helped US memory maker Micron establish a $2.75 billion assembly facility in Gujarat.
The approved three semiconductor units include the Semiconductor Fab with 50,000 wafer starts per month capacity, the Semiconductor assembly, testing, monitoring and packing (ATMP) unit in Assam and the Semiconductor ATMP unit for specialised chips.
"So, this will be good capacity, it will be catering to about eight sectors. The sectors in which we'll be using the chips manufactured in this fab are, high power computers, which will go into laptops and servers, mobile phones, many electronics items, display items, electric vehicles, regular bikes and cars, in industrial applications like big machinery, the controls of big machinery, and telecom," IT Minister Ashiwini Vaishnaw told CNBC-TV18's Ashmit Kumar.
Tata Electronics will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan and this fab will be constructed in Dholera, Gujarat. Investment in this fab will be $3 billion (₹91,000 crore). It has also held talks with United Microelectronics Corp.
Speaking on the partnership with Tata, the minister said, "Fab of this nature is very complex, it requires time, but our Prime Minister has given the target that like Micron, where the construction started within 90 days of the approval. Here he has given again similar target within next 100 days, we must start the construction. So we'll focus a lot on setting up the fab in record time. The chips produced out of this foundry will be consumed in India as well as exported."
The new facility will produce so-called mature chips — using 40-nanometer or older technology — that are very widely used in consumer electronics, automobiles, defence systems and aircraft.
The semiconductor ATMP unit in Assam be set up with an investment of ₹27,000 crore.
Vaishnaw also informed that CG Power — in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand — will set up a semiconductor unit in Sanand, Gujarat. Investment in the Sanand unit is estimated at ₹7,600 crore.
Through the initiative, the government has estimated direct employment opportunities are projected to reach 20,000 in advanced technology.
The ripple effect is expected to generate an additional 60,000 indirect jobs, spanning downstream industries such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.
(The copy has been updated with quotes from IT Minister Ashwini Vaishnaw)
These units, slated to commence construction within the next 100 days, will be a part of the 'Development of Semiconductors and Display Manufacturing Ecosystems in India' initiative, launched in December 2021. The fund has already helped US memory maker Micron establish a $2.75 billion assembly facility in Gujarat.
The approved three semiconductor units include the Semiconductor Fab with 50,000 wafer starts per month capacity, the Semiconductor assembly, testing, monitoring and packing (ATMP) unit in Assam and the Semiconductor ATMP unit for specialised chips.
"So, this will be good capacity, it will be catering to about eight sectors. The sectors in which we'll be using the chips manufactured in this fab are, high power computers, which will go into laptops and servers, mobile phones, many electronics items, display items, electric vehicles, regular bikes and cars, in industrial applications like big machinery, the controls of big machinery, and telecom," IT Minister Ashiwini Vaishnaw told CNBC-TV18's Ashmit Kumar.
Tata Electronics will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan and this fab will be constructed in Dholera, Gujarat. Investment in this fab will be $3 billion (₹91,000 crore). It has also held talks with United Microelectronics Corp.
Speaking on the partnership with Tata, the minister said, "Fab of this nature is very complex, it requires time, but our Prime Minister has given the target that like Micron, where the construction started within 90 days of the approval. Here he has given again similar target within next 100 days, we must start the construction. So we'll focus a lot on setting up the fab in record time. The chips produced out of this foundry will be consumed in India as well as exported."
The new facility will produce so-called mature chips — using 40-nanometer or older technology — that are very widely used in consumer electronics, automobiles, defence systems and aircraft.
The semiconductor ATMP unit in Assam be set up with an investment of ₹27,000 crore.
Vaishnaw also informed that CG Power — in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand — will set up a semiconductor unit in Sanand, Gujarat. Investment in the Sanand unit is estimated at ₹7,600 crore.
Through the initiative, the government has estimated direct employment opportunities are projected to reach 20,000 in advanced technology.
The ripple effect is expected to generate an additional 60,000 indirect jobs, spanning downstream industries such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.
(The copy has been updated with quotes from IT Minister Ashwini Vaishnaw)
First Published: Feb 29, 2024 4:32 PM IST
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