India Bets Big On Semiconductor Manufacturing, Approves 3 New Units

The Indian government has approved the establishment of three new semiconductor units. This decision is a part of India’s ambitious plan to build a robust semiconductor and display manufacturing ecosystem within the country.

What Happened: The Indian Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned the creation of three semiconductor manufacturing units. These units, part of the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’, are set to commence construction within the next 100 days.

The initiative, which was officially announced on December 21, 2021, involves a substantial investment of ₹76,000 crore. One of the units, proposed by Micron in June 2023 for Sanand, Gujarat, is already witnessing swift progress, signalling the rise of a strong semiconductor ecosystem in the region.

The first of the three units, a semiconductor fabrication facility with a capacity of 50,000 wafer starts per month, will be established by Tata Electronics Private Limited (TEPL) in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan, in Dholera, Gujarat, with an investment of ₹91,000 crore.

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Secondly, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up an Advanced Semiconductor Assembly and Test (ATMP) unit in Morigaon, Assam. This unit, attracting an investment of ₹27,000 crore, will focus on developing indigenous advanced semiconductor packaging technologies.

The third unit, also an ATMP facility for specialized chips, will be a joint venture between CG Power, Renesas Electronics Corporation of Japan, and Stars Microelectronics of Thailand in Sanand, Gujarat. With an investment of ₹7,600 crore, it will produce chips for various applications including consumer, industrial, and automotive sectors.

These strategic developments are expected to significantly enhance India’s semiconductor manufacturing capabilities and generate considerable employment opportunities.

The units are expected to generate direct employment of 20,000 advanced technology jobs and about 60,000 indirect jobs.

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