In a significant stride towards establishing a robust semiconductor ecosystem, the Indian government has given the nod to the creation of three additional semiconductor plants, including two major initiatives by Tata, along with a pioneering venture in Assam. These developments, earmarked to commence construction within the forthcoming 100 days, mark a critical phase in India’s semiconductor ambitions, initially set in motion in December 2021 with an allocation of ₹76,000 crore.
A Milestone Announcement by the Union Minister
Ashwini Vaishnaw, the Union Minister for Electronics & Information Technology, highlighted the groundbreaking move towards hosting the country’s first commercial semiconductor fabrication unit. This ambitious project, a collaboration between Tata Electronics Private Limited and Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC), is to be situated in Gujarat’s Dholera. With an investment pegged at ₹91,000 crore, this facility is poised to significantly bolster India’s manufacturing capabilities in the semiconductor domain.
PSMC, with its distinguished prowess in the logic and memory foundry segments, brings to the table a wealth of experience with its six semiconductor foundries in Taiwan. The Dholera facility alone is expected to produce 50,000 wafers monthly, translating to an impressive annual output of 300 crore chips.
Northeast’s Semiconductor Foray
The northeastern region of India is set to welcome its first semiconductor unit in Assam, a move that promises to revolutionize the local technology landscape. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) plans to establish this unit in Morigaon with an investment of ₹27,000 crore. This venture not only underscores the geographical diversification of India’s semiconductor ambitions but also showcases the commitment to developing advanced semiconductor packaging technologies domestically.
Enhancing Semiconductor Capabilities in Gujarat
Further extending its semiconductor footprint, Gujarat will also play host to another assembly, testing, marking, and packaging (ATMP) unit in Sanand. This project, a collaborative effort between CG Power, Japan’s Renesas Electronics Corporation, and Thailand’s Stars Microelectronics, aims to specialize in chips, with a focus on microcontrollers, analog, power, and System-on-chip products. The total investment for this unit is anticipated at ₹7,600 crore.
A Cumulative Vision for India’s Semiconductor Ecosystem
The combined investment for these three units is projected at ₹1.26 lakh crore, underscoring the Indian government’s substantial commitment to nurturing a homegrown semiconductor ecosystem. This initiative is not only about enhancing India’s manufacturing capabilities but also about leveraging its deep-rooted expertise in chip design to achieve self-reliance and innovation in chip fabrication and advanced packaging technologies.
The recent approval of a proposal by US-based chipmaker Micron to establish a semiconductor unit in Sanand, Gujarat, further accentuates the momentum gaining pace in India’s semiconductor sector. With construction well underway, a vibrant semiconductor ecosystem is emerging, promising to position India as a significant player in the global semiconductor arena.
As these projects unfold, India’s strategic advancements in the semiconductor domain are set to pave the way for a future where technological self-sufficiency and innovation are key drivers of its economic and industrial growth.
