In the bustling city of New Delhi, a pivotal decision was greenlit by the Union Cabinet, presided over by the esteemed Prime Minister Narendra Modi. The nod was granted for the establishment of three avant-garde semiconductor units, marking a significant stride in the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India.’ All three units are poised to commence construction within the forthcoming 100 days, orchestrating a transformative leap into the realms of cutting-edge technology.
Unveiling this groundbreaking development during the Cabinet briefing, Union Minister for Communications, Electronics & Information Technology, Ashwini Vaisnaw, elucidated, “Today, the Prime Minister has orchestrated a pivotal move to institute a semiconductor fab within the nation. The inaugural commercial semiconductor fab will be materialized through a collaborative effort between Tata and Powerchip-Taiwan, situating their plant in the industrially vibrant locale of Dholera.”
Delving into specifics, the minister disclosed that a staggering 300 crore chips would roll off the assembly lines annually from this state-of-the-art facility. In a strategic move, the Northeast region is set to witness its maiden semiconductor Unit unfurl in Assam, with a prodigious production capacity of 48 million chips per day. The cumulative investment earmarked for these three units is a formidable one lakh twenty-six thousand crore, comprising 91,000 crore for the FAB, 27,000 crore for the Assam unit, and 7,600 crore for the Sanand unit.
The inception of the ‘Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India’ was heralded on December 21, 2021, with a substantial financial outlay of Rs 76,000 crore. In a forward-looking move, the Union Cabinet had previously sanctioned Micron’s proposal in June 2023, paving the way for a semiconductor unit in Sanand, Gujarat.
The construction momentum of the aforementioned unit in Sanand is rapid, catalyzing the emergence of a robust semiconductor ecosystem in its vicinity. The greenlit trio of semiconductor units encompasses a Semiconductor Fab with a capacious 50,000 wfsm, orchestrated by Tata Electronics Private Limited in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, stationed in Dholera, Gujarat, with an investment corpus of Rs 91,000 crore.
PSMC, lauded for its prowess in logic and memory foundry segments, boasts six semiconductor foundries in Taiwan. The planned plant will wield a remarkable capacity of 50,000 wafer starts per month (WSPM), translating to a staggering 300 crore chips annually, spanning across diverse sectors such as automobiles and telecommunications.
Adding to the tapestry of semiconductor prowess, Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) is set to establish a Semiconductor ATMP unit in Morigaon, Assam, with an investment of Rs 27,000 crore. This unit will be at the vanguard of developing indigenous advanced semiconductor packaging technologies, encompassing flip chip and ISIP (integrated system in package) technologies, and churning out 48 million chips daily across varied segments like automotive, electric vehicles, consumer electronics, and telecom.
In a unique collaboration, CG Power, in tandem with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, is poised to set up a Semiconductor ATMP unit for specialized chips in Sanand, Gujarat, infused with an investment of Rs.7,600 crore. The plant’s capacity is pegged at 15 million per day, with Renesas, a trailblazing semiconductor company specializing in bespoke chips, operating in microcontrollers, analog, power, and System on Chip (‘SoC)’ products.
In a remarkably brief span, the India Semiconductor Mission has notched up four monumental successes. These units signify the bedrock on which the semiconductor ecosystem in India will solidify further. The nation already boasts profound capabilities in chip design, and with the addition of these units, India is poised to advance its prowess in chip fabrication.
Pioneering strides extend beyond chip manufacturing; indigenous development of advanced packaging technologies is set to unravel with this momentous announcement. The three units collectively pledge to generate 20 thousand direct employment opportunities in advanced technology, complemented by an additional 60 thousand indirect jobs. The ripple effect will be felt across downstream industries such as automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming sectors.