The Union Cabinet has approved the establishment of three additional semiconductor plants, further boosting India’s chip program initiated in December 2021 with an allocated budget of Rs 76,000 crore.
According to Union Minister for Electronics & Information Technology Ashwini Vaishnaw, Tata Electronics Private Limited, in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC), will spearhead the construction of the first commercial semiconductor fab in Dholera, Gujarat, with an investment totalling Rs 91,000 crore. PSMC, renowned for its proficiency in logic and memory foundry segments, brings expertise to this venture with 6 semiconductor foundries in Taiwan.
This facility aims to produce 50,000 wafers per month and churn out 300 crore chips annually. Additionally, Northeast India will witness the establishment of its inaugural semiconductor unit in Morigaon, Assam, by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) with an investment of Rs.27,000 crore. TSAT is focusing on developing indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies.
Furthermore, another ATMP (assembly, testing, marking, and packaging) unit will be established in Sanand, Gujarat, by CG Power in collaboration with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics, with an investment of Rs 7,600 crore. Renesas, specializing in advanced chips, contributes its expertise with 12 semiconductor facilities and significant contributions to microcontrollers, analog, power, and System-on-chip products.
The investment across all three units will amount to Rs 1.26 lakh crore, with a breakdown of Rs 91,000 crore for the FAB, Rs 27,000 crore for the Assam unit, and Rs 7,600 crore for the Sanand unit. This strategic move is set to establish a robust semiconductor ecosystem in India, leveraging the country’s existing strengths in chip design while fostering capabilities in chip fabrication. Moreover, with the incorporation of advanced packaging technologies, India aims to develop indigenous capabilities further.