PM Modi unveils ambitious Semiconductor Project with Tata Group: Gujarat and Assam to Host State-of-the-Art Chip Plants
In a significant step towards bolstering India’s semiconductor industry, Prime Minister Narendra Modi laid the foundation stones for three new chip plants on Wednesday, March 13. The groundbreaking ceremony marked a milestone in the country’s efforts to enhance its semiconductor ecosystem, with two plants to be established in Gujarat and one in Assam.
The event, titled ‘India’s Techade: Chips for Viksit Bharat,’ saw PM Modi participating virtually as he inaugurated the semiconductor facilities, which collectively carry a financial investment of approximately Rs 1.25 lakh crore. Notably, Tata Group is spearheading the establishment of two out of the three semiconductor plants.
The initiative underscores India’s commitment to developing its semiconductor manufacturing capabilities, a crucial aspect of the country’s technological advancement and economic growth. With the demand for semiconductors skyrocketing globally, particularly in the wake of the digital transformation and the proliferation of emerging technologies, India’s move to bolster its semiconductor industry is timely and strategic.
Last month, the Union Cabinet chaired by Prime Minister Narendra Modi approved the establishment of three more semiconductor units under ‘ the Development of Semiconductors and Display Manufacturing Ecosystems in India. All three units – two in Gujarat and one in Assam — will start construction within the next 100 days.
The semiconductor industry in India is still in a nascent stage, with various local and multinational companies intending to tap its vast potential.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on December 21, 2021, with a total outlay of Rs. 76,000 crore. The approved three semiconductor units for which foundation stones are laid today are: Tata Electronics Private Limited (“TEPL”) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat. Investment in this fab will be Rs 91,000 crore. PSMC has 6 semiconductor foundries in Taiwan. The capacity of the Dholera unit will be 50,000 wafer starts per month (WSPM).
CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat. This unit will be set up with an investment of Rs 7,600 crore. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.
Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam. With a capacity of producing 48 million chips per day, this facility is being built at a cost of Rs 27,000 crore. Segments that will be covered are automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs.These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries.
Meanwhile, American chip maker Micron’s high-end semiconductor fabrication plant at Gujarat’s Sanand, which is India’s first, is coming into reality at a rapid pace. It is expected to be operational in late 2024.
Micron Technology is investing USD 2.5 billion (Rs 22,500 crore) to establish an ATMP (assembly, test, marking, and packaging) facility in Gujarat’s Sanand GIDC-II. Sanand GIDC is a highly industrialised zone in Gujarat, home to many national and multinational manufacturing industries.
