Giant Leap for India’s Semiconductor Mission: Cabinet Approves 3 More Semiconductor Units

GG News Bureau
New Delhi, 29th Feb. The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved the establishment of three semiconductor units under the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative. All three units are slated to commence construction within the next 100 days.

The ‘Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India’ was initially announced on December 21, 2021, with a total outlay of Rs. 76,000 crore.

In a significant move in June 2023, the Union Cabinet had previously sanctioned Micron’s proposal to set up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing rapidly, heralding the emergence of a robust semiconductor ecosystem in its vicinity.

The three approved semiconductor units are as follows:

1. Semiconductor Fab with 50,000 wfsm Capacity: Tata Electronics Private Limited (TEPL) will spearhead the establishment of a semiconductor fab in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. This fab, to be situated in Dholera, Gujarat, will entail an investment of Rs. 91,000 crore. PSMC brings its expertise in logic and memory foundry segments to the partnership, boasting 6 semiconductor foundries in Taiwan. The fab will focus on high-performance compute chips with 28 nm technology and power management chips for various applications, including electric vehicles, telecom, defense, automotive, and consumer electronics.
2. Semiconductor ATMP Unit in Assam: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a semiconductor unit in Morigaon, Assam, with an investment of Rs. 27,000 crore. TSAT is dedicated to developing indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies. The unit will cater to segments such as automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
3. Semiconductor ATMP Unit for Specialized Chips: CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs. 7,600 crore. Renesas is a prominent semiconductor company specializing in microcontrollers, analog, power, and System on Chip (SoC) products. The unit will manufacture chips for consumer, industrial, automotive, and power applications.

Strategic Significance: These units mark significant strides in establishing the semiconductor ecosystem in India, reinforcing the nation’s capabilities in chip design and fabrication. The announcement also underscores the indigenous development of advanced packaging technologies.

Employment Potential: The establishment of these units is expected to generate approximately 20,000 direct advanced technology jobs and around 60,000 indirect jobs, contributing to employment growth across various semiconductor-consuming industries.