Union Cabinet today approved the establishment of three semiconductor units. These units, to be constructed within the next 100 days show major step in India’s journey towards self-reliance in semiconductor production.
The decision comes as part of the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was initiated on December 21, 2021, with a total outlay of Rs. 76,000 crore.
Notably, in June 2023, the Union Cabinet had approved a proposal by Micron to set up a semiconductor unit in Sanand, Gujarat, with construction progressing rapidly.
The newly approved semiconductor units include:
Semiconductor Fab with 50,000 wfsm capacity: Tata Electronics Private Limited (TEPL), in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan, will establish a semiconductor fab in Dholera, Gujarat, with an investment of Rs. 91,000 crore. The fab will focus on producing high-performance compute chips and power management chips for various sectors.
Semiconductor ATMP unit in Assam: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam, with an investment of Rs. 27,000 crore. The unit will specialize in advanced semiconductor packaging technologies and cater to segments such as automotive, consumer electronics, and telecom.
Semiconductor ATMP unit for specialized chips: CG Power, in partnership with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, will establish a semiconductor unit in Sanand, Gujarat, with an investment of Rs. 7,600 crore. This unit will focus on manufacturing chips for consumer, industrial, automotive, and power applications.
The establishment of these semiconductor units is expected to generate around 20,000 direct jobs in advanced technology sectors and approximately 60,000 indirect jobs. Moreover, it will accelerate employment creation across various industries, including automotive, electronics manufacturing, and telecom, thereby fostering economic growth and technological advancement in the country.