Government approves construction of 3 semiconductor units

The Union Cabine has authorized the establishment of three semiconductor units as part of the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative.

Construction of these units will commence within the next 100 days, as confirmed by the Minister of Electronics & Information Technology, Ashwini Vaishnaw.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was officially launched on 21.12.2021, with a total investment of Rs. 76,000 crore.

In June 2023, the Union Cabinet approved Micron’s proposal for a semiconductor unit in Sanand, Gujarat, which is currently under construction, bolstering the local semiconductor ecosystem.

Approved Semiconductor Units:

1) Semiconductor Fab by Tata Electronics Private Limited (TEPL) and Powerchip Semiconductor Manufacturing Corp (PSMC)

TEPL, in partnership with PSMC from Taiwan, will establish a semiconductor fab in Dholera, Gujarat, with an investment of Rs.91,000 crore.

The fab will have a capacity of 50,000 wafer starts per month (WSPM) and cater to segments such as high-performance compute chips and power management chips.

2) Semiconductor ATMP Unit by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Assam

TSAT will set up a semiconductor unit in Morigaon, Assam, investing Rs.27,000 crore.

This unit will focus on advanced semiconductor packaging technologies, with a daily capacity of 48 million units, catering to automotive, electric vehicles, consumer electronics, and telecom sectors.

3) Semiconductor ATMP Unit for Specialized Chips by CG Power, Renesas Electronics Corporation, and Stars Microelectronics

CG Power, in collaboration with Renesas Electronics Corporation from Japan and Stars Microelectronics from Thailand, will establish a semiconductor unit in Sanand, Gujarat, with an investment of Rs.7,600 crore.

This unit will specialize in manufacturing chips for consumer, industrial, automotive, and power applications, with a capacity of 15 million units per day.

Employment Opportunities

These units are expected to create 20,000 direct advanced technology jobs and approximately 60,000 indirect jobs, boosting employment in downstream industries like automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.

Strategic Importance

Minister Ashwini Vaishnaw highlighted the strategic significance of these units, leveraging India’s chip design capabilities. The establishment of these units will significantly enhance the semiconductor ecosystem in India, marking a milestone for the India Semiconductor Mission.

In his announcement, Minister of Electronics & Information Technology Ashwini Vaishnaw stated:

With these units, our nation will cultivate expertise in chip fabrication. Today’s announcement marks a significant stride towards the indigenous development of advanced packaging technologies within India.