Development of Semiconductors India initiative | Union Cabinet gives nod to establishment of 3 semiconductor units

New Delhi, Feb 29:  The Union Cabinet, chaired by Prime Minister 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” initiative.

These units are slated to commence construction within the next 100 days, marking a pivotal stride in India's semiconductor manufacturing landscape.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, with a total outlay of Rs. 76,000 crores, was initiated on December 21, 2021.

This latest approval comes as a boost after the Union Cabinet had previously greenlit Micron's proposal for a semiconductor unit in Sanand, Gujarat, in June 2023. Construction for the Micron unit is progressing rapidly, fostering the emergence of a semiconductor ecosystem in the vicinity.

Telecom Minister Ashwini Vaishnaw, in an address following the Cabinet's clearance, revealed that the approved projects entail a collective investment of around Rs. 1.26 lakh crore ($15.2 billion).

Among these projects is what could potentially be India's first semiconductor fabrication plant, to be established by the Tata Group in collaboration with a Taiwanese technology partner.

Details of the approved semiconductor Units:

Semiconductor Fab with 50,000 wfsm Capacity: Tata Electronics Private Limited (TEPL) will spearhead this initiative in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan. This fab, set to be constructed in Dholera, Gujarat, will entail an investment of Rs. 91,000 crore and boast a capacity of 50,000 wafer starts per month (WSPM). It will focus on high-performance computer chips with 28 nm technology and power management chips for various applications.

Semiconductor ATMP Unit in Assam: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish this unit in Morigaon, Assam, with an investment of Rs. 27,000 crore. With a capacity of 48 million per day, it will specialize in automotive, electric vehicles, consumer electronics, telecom, and mobile phone segments.

Semiconductor ATMP Unit for Specialized Chips: CG Power, in collaboration with Renesas Electronics Corporation from Japan and Stars Microelectronics from Thailand, will set up this unit in Sanand, Gujarat, with an investment of Rs. 7,600 crores. Focusing on manufacturing chips for consumer, industrial, automotive, and power applications, it will have a capacity of 15 million per day.

Officials say that these initiatives are poised to drive significant employment opportunities, with an estimated 20,000 advanced technology jobs and around 60,000 indirect jobs expected to be generated. Moreover, they will accelerate employment creation in downstream industries such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing, solidifying India's position in the global semiconductor arena.