Three new Indian Semiconductor Units approved, with Tata developing two of them

Under the banner, "Development of Semiconductors and Display Manufacturing Ecosystem in India," the Union Cabinet, presided over by Prime Minister Narendra Modi, approved three semiconductor units on Thursday. The construction is scheduled to begin within the next 100 days, according to a center announcement. Recall that the Indian government announced on December 21, 2021, a program aimed at developing the country's semiconductor and display manufacturing ecosystem, with a total budget of Rs 76,000 crore.

The Union Cabinet gave its approval in June 2023 to Micron's proposal to establish a semiconductor plant in Sanand, Gujarat. The government release stated that the development of the aforementioned unit remains active and moving swiftly.

Three additional semiconductor units, two of which will be produced by the Tata Group, will be established under the most recent clearance. Tata Electronics Private Limited and Taiwan's Powerchip Semiconductor Manufacturing Corp. will collaborate to produce the first one. This semiconductor plant, which to be built in Dholera, Gujarat, will require a total investment of Rs 91,000 crore. This semiconductor plant will initially have a monthly capacity of 50,000 wafers.

Tata Semiconductor Assembly and Test Pvt Lt, a firm under the Tata Group, will also supply the second unit. The location of this semiconductor plant will be in Morigaon, Assam. This factory is said have a 48 million daily capacity and will cost Rs 27,000 crore to put up.

In collaboration with Renesas Electronics Corporation in Japan and Stars Microelectronics in Thailand, CG Power will supply the third unit. The establishment of this new facility is estimated to cost Rs 7,600 crore in total will take place at Sanand, Gujarat. This facility is also said to have a daily capacity of 15 million.

Lt. Gen. Dr. S.P. Kochhar, Director General, COAI said, “The Union Cabinet’s approval on the establishment of three semiconductor units under the India Semiconductor Mission is a positive and commendable development. This is a progressive step for India and the strongly emerging manufacturing ecosystem in the country. We believe this serves as an excellent example for our nation towards attaining self-sufficiency in line with our Hon’ble Prime Minister’s vision of ‘Atmanirbharta’ and will further inspire India’s goals to become a global manufacturing and supply chain hub. Moreover, with the output from these facilities being poised to benefit various sectors and segments, it is expected to provide a fillip to the ‘Digital India’ mission through increased technological prowess and advancement of the indigenous industrial ecosystem, besides generating employment and attracting more investments in the country.”

The primary goal of establishing these facilities in India is to guarantee that the country can advance from its design capabilities to semiconductor manufacturing capabilities. This action will contribute to the development of the nation's semiconductor manufacturing ecosystem.