The Union Cabinet on Thursday approved the establishment of three more semiconductor plants, including two by Tata and one in Assam. All three units will start construction within the next 100 days. India’s chip programme was rolled out in December 2021 with a total outlay of Rs 76,000 crore.
“Today the Prime Minister has taken an important decision to set up semiconductor fab in the country. The first commercial semiconductor fab will be set up by Tata and Powerchip-Taiwan, whose plant will be in Dholera,” said Union Minister for Electronics & Information Technology Ashwini Vaishnaw.
Tata Electronics Private Limited will set up a semiconductor fab in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) in Gujarat’s Dholera. Investment in this fab will be Rs 91,000 crore. PSMC, renowned for its expertise in logic and memory foundry segments, has 6 semiconductor foundries in Taiwan.
“50,000 wafer per month will be manufactured. 300 crore chips will be manufactured annually through this facility,” the IT minister said.
Northeast will get its first semiconductor unit in Assam. From this plant, 48 million chips per day will be manufactured. In Assam, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon. This plant will be set up with an investment of Rs.27,000 crore.
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TSAT is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.
Another ATMP (assembly, testing, marking, and packaging) will be set up by CG Power, in partnership with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics in Sanand, Gujarat. Renesas, which focuses on specialised chips, operates 12 semiconductor facilities and is an important player in microcontrollers, analog, power, and System on Chip products.
“Cumulative investment in all three units will be Rs 1.26 lakh crore. “The breakdown is an investment in FAB will be 91,000 crore. Investment in the Assam unit will be 27,000 crore. Investment in the Sanand unit will be Rs 7,600 crore,” he said.
In June last year, the Union Cabinet approved the proposal of US-based chipmaker Micron for setting up a semiconductor unit in Sanand, Gujarat. “Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit,” the Cabinet said in a note on Thursday.
The Cabinet said that with these units, the semiconductor ecosystem will be established in India. “India already has deep capabilities in chip design.
With these units, our country will develop capabilities in chip fabrication,” it added. With today’s announcement, advanced packaging technologies will be indigenously developed in India.
