India's Semiconductor Mission Advances with Approval of Three Major Units

In a significant stride towards self-reliance in semiconductor manufacturing, the Union Cabinet, led by Prime Minister Shri Narendra Modi, has given the green light for the establishment of three semiconductor units under the 'Development of Semiconductors and Display Manufacturing Ecosystems in India.' This development comes as part of the larger Program for Development of Semiconductors and Display Manufacturing Ecosystem in India, initiated in December 2021, with a substantial outlay of Rs. 76,000 crore.

The three approved semiconductor units are set to commence construction within the next 100 days, marking a swift and crucial progress for India's Semiconductor Mission. The first of these units is a Semiconductor Fab in Dholera, Gujarat, with a whopping investment of Rs. 91,000 crore. Tata Electronics Private Limited, in collaboration with Powerchip Semiconductor Manufacturing Corp from Taiwan, will spearhead the construction of this unit, focusing on high-performance compute chips and power management chips for various applications.

The second unit, a Semiconductor ATMP (Assembly and Test, Mark and Pack) facility, will be established in Morigaon, Assam, by Tata Semiconductor Assembly and Test Pvt Ltd. With an investment of Rs. 27,000 crore, this unit will specialize in advanced semiconductor packaging technologies, catering to automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

The third unit, another Semiconductor ATMP facility, will be set up in Sanand, Gujarat, by CG Power in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand. With an investment of Rs. 7,600 crore, this unit will manufacture specialized chips for consumer, industrial, automotive, and power applications.

These units mark a pivotal achievement for the India Semiconductor Mission, contributing to the establishment of a robust semiconductor ecosystem in the country. The initiative holds strategic importance as it not only fosters chip fabrication capabilities but also promotes the development of advanced packaging technologies within India. The approval is anticipated to generate 20 thousand direct advanced technology jobs and around 60 thousand indirect jobs, accelerating employment across various sectors, including automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.