Giant Leap for India’s Semiconductor Mission: Japanese, Taiwanese & Tata Firms Get Nod for 3 More Plants

New Delhi (India – February 29, 2024) – : In a significant stride towards bolstering India’s semiconductor industry, the Union Cabinet has greenlit the establishment of three new semiconductor units as part of the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative. This move marks a pivotal moment in the country’s technological advancement and economic growth trajectory. The construction of all three units is set to commence within the next 100 days, signaling a swift and decisive action towards achieving self-sufficiency in semiconductor manufacturing.

The Union Minister for Railways, Communications, Electronics and Information Technology, Mr Ashwini Vaishnaw briefed the media on Cabinet decisions at National Media Centre.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was initially introduced on December 21, 2021. Following this, in June 2023, the Cabinet had previously approved Micron’s proposal for establishing a semiconductor unit in Sanand, Gujarat, which is currently progressing at a commendable pace, fostering the emergence of a robust semiconductor ecosystem in the vicinity.

Three newly approved semiconductor units

Tata Electronics Private Limited (TEPL) in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan will spearhead the establishment of this $11 billion semiconductor fab in Dholera, Gujarat. Technology Partner PSMC, renowned for its expertise in logic and memory foundry segments, will bring in a wealth of experience, boasting 6 semiconductor foundries in Taiwan with a capacity of 50,000 wafer starts per month (WSPM). The segments covered will be high-performance computer chips with 28 nm technology and power management chips catering to various sectors including electric vehicles (EV), telecom, defense, automotive, consumer electronics, display, and power electronics.

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a $3.3 billion unit in Morigaon, Assam. TSAT semiconductor is at the forefront of developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies with a capacity of  48 million per day, covering automotive, electric vehicles, consumer electronics, telecom, and mobile phones among other segments.

CG Power, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up a $91.6 million chip packaging plant in Sanand, Gujarat. Renesas Electronics Corporation, a leading semiconductor company specializing in microcontrollers, analog, power, and System on Chip (SoC) products The unit will have a capacity of producing 15 million per day covering consumer, industrial, automotive, and power applications.

These developments signify significant milestones in India’s Semiconductor Mission, establishing a strong semiconductor ecosystem within the country.

The establishment of these units will not only foster chip fabrication capabilities but also propel advancements in chip design and indigenous packaging technologies. These units hold strategic importance in enhancing India’s self-reliance in critical technologies and reducing dependency on imports.

Employment Potential

The semiconductor units are projected to generate approximately 20,000 direct advanced technology jobs and about 60,000 indirect jobs, thus catalyzing employment creation across various sectors including automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.

In conclusion, the approval of these three semiconductor units marks a monumental leap forward for India’s semiconductor industry, affirming the nation’s commitment to technological self-reliance and fostering innovation-driven growth. These initiatives are poised to not only create significant employment opportunities but also position India as a global hub for semiconductor manufacturing and technological innovation in the years to come.