On Thursday, the Union Cabinet approved the construction of three new semiconductor plants, two of which will be owned by Tata and one in Assam. All three apartments will begin construction within the following hundred days. India's chip initiative was launched in December 2021, with a total investment of Rs 76,000 crore.
"Today, the Prime Minister made a significant decision to set up a semiconductor fab in the country. The first commercial semiconductor fab will be established by Tata and Powerchip-Taiwan, with a factory in Dholera," said Union Minister for Electronics and Information Technology Ashwini Vaishnav.
Tata Electronics Private Limited plans to establish a semiconductor manufacturing facility in Dholera, Gujarat, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corp. The investment in this facility will be Rs 91,000 crore. PSMC, known for its strength in the logic and memory foundry areas, operates six semiconductor foundries in Taiwan.
"50,000 wafers each month will be produced. The factory would produce 300 crore chips every year, according to the IT ministry.
Assam will host the Northeast's first semiconductor facility. This factory will create 48 million chips each day. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) plans to establish a semiconductor manufacturing facility in Morigaon, Assam. This factory will be built at an investment of Rs.27,000 crore.
TSAT is developing its own sophisticated semiconductor packaging methods, such as flip chip and ISIP (integrated system in package).
CG Power will establish another ATMP (assembly, testing, marking, and packaging) in Sanand, Gujarat, in collaboration with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand. Renesas, which manufactures specialist chips, has 12 semiconductor facilities and is a major player in microcontrollers, analog, power, and System on Chip technologies.
"Cumulative investment in all three units will be Rs 1.26 lakh crore."The calculation shows that an investment in FAB will cost 91,000 crore. The investment in the Assam unit will be 27,000 crore. He stated that the investment in the Sanand business will be Rs 7,600 crore.
In June of last year, the Union Cabinet accepted Micron's request to establish a semiconductor unit in Sanand, Gujarat. "Construction of this unit is proceeding at a rapid pace, and a robust semiconductor ecosystem is emerging near the unit," the Cabinet said in a statement on Thursday.
The Cabinet stated that these units will help create India's semiconductor ecosystem. "India already has extensive expertise in chip design. With these units, our country will improve its chip fabrication capabilities. With today's declaration, India will develop sophisticated packaging technology on its own," it stated.
