Guwahati, Feb 29: In a landmark decision, the Union Cabinet of India has granted approval for the development of three semiconductor units, marking a significant stride towards fortifying the nation’s semiconductor and display manufacturing ecosystem. The announcement was made by Union Minister for Communications, Electronics, and Information Technology, Ashwini Vaishnaw, following a cabinet meeting.
The approved units, slated to commence construction within the next 100 days, are poised to attract a cumulative investment of Rs 1.26 lakh crore. Among these, the first commercial semiconductor fab in the country will be established by Tata and Powerchip-Taiwan, with their plant set to be situated in Dholera, Gujarat.
Notably, the northeast region of India is set to witness the establishment of its inaugural semiconductor unit in Assam. With an investment of Rs 27,000 crore, this facility by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) in Morigaon, Assam, will focus on developing indigenous advanced semiconductor packaging technologies.
Additionally, a semiconductor unit for specialized chips will be set up in Sanand, Gujarat, by CG Power in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand. This unit, with an investment of Rs 7,600 crore, will cater to manufacturing chips for various applications including consumer, industrial, automotive, and power sectors.
These initiatives are anticipated to generate substantial employment opportunities, with the creation of 20,000 direct advanced technology jobs and approximately 60,000 indirect jobs. Furthermore, they are expected to accelerate employment generation in downstream industries such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.
The approval of these semiconductor units marks a significant milestone in the India Semiconductor Mission, aligning with the nation’s objective of establishing a robust semiconductor ecosystem. With deep capabilities in chip design and the establishment of fabrication capabilities through these units, India is poised to enhance its position in the global semiconductor landscape.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, initiated in December 2021 with a total outlay of Rs 76,000 crore, has witnessed notable progress with the approval of these units. Furthermore, the construction of Micron’s semiconductor unit in Sanand, Gujarat, approved earlier by the Union Cabinet, is progressing rapidly, contributing to the emergence of a thriving semiconductor ecosystem in the vicinity.
The approval of these semiconductor units underscores the government’s commitment to fostering indigenous manufacturing capabilities, enhancing technological self-reliance, and positioning India as a key player in the global semiconductor market.
