Industry praises Union Cabinet approval for 2 semiconductor plants in Gujarat, 1 in Assam, with expected investment of Rs 1.26 lakh crore.
The Union Cabinet led by Prime Minister Narendra Modi has approved three proposals for semiconductor factories, a major step to strengthen India’s chip-making capability. The decision announced on Thursday includes setting up two semiconductor plants in Gujarat and one in Assam. The investment is estimated to be Rs 1.26 lakh crore.
At the heart of this initiative is the establishment of a commercial semiconductor manufacturing unit in India, a joint venture between Tata Electronics Private Limited and Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan, to be located in Dholera, Gujarat.
Speaking about this groundbreaking development, Union Minister for Electronics and Information Technology Ashwini Vaishnaw stated that the Dholera plant, to be built at an estimated cost of Rs 91,000 crore, will be a milestone in India’s semiconductor world.
The facility, with a capacity of 50,000 wafers per month, is ready to be an important factor in the domestic semiconductor supply chain.
Emphasizing the significance of the Prime Minister’s decision, Vaishnaw highlighted the game-changing impact of setting up India’s first commercial semiconductor plant. He emphasized that the collaboration between Tata and Taiwanese Powerchip marks a pivotal moment for the country.
Further, cabinet approval extends to Tata Semiconductor Assembly and Test Pvt Ltd’s (TSAT) semiconductor ATMP unit at Assam’s Morigaon with a significant investment of Rs 27,000 crore. This move is poised to strengthen semiconductor infrastructure in India’s northeast region, which will drive regional economic development and technological advancement, officials said.
The government has also approved the setting up of another semiconductor plant at Sanand in Gujarat, run by CG Power and Japanese semiconductor manufacturer and market leader in the microcontroller, analog, power and SoC markets, Renesas. This project, with an estimated cost of Rs 7,600 crore, is expected to produce 15 million chips per day, further strengthening India’s semiconductor manufacturing capabilities.
This is the second semiconductor plant to be opened in Sanand. Last year, US chipmaker Micron revealed plans to develop a new manufacturing and testing facility in Gujarat. And as promised, the company has laid the foundation for its Rs 2.75 billion facility in Sanand.
Indian Electronics and Semiconductor Society (IESA) president Sanjay Gupta and president Ashok Chandak hailed the government’s move. They said in a statement, “The decision marks a watershed moment for the Indian semiconductor industry. With construction scheduled to begin within the next 100 days, this initiative underscores India’s commitment to fostering a strong semiconductor manufacturing ecosystem. We are particularly proud to note that Tata Electronics and Renesas Electronics, both of the prestigious India Electronics and Semiconductor Association (IESA) members, are key players in this endeavour, their participation not only demonstrates their dedication to India’s technological development, but also highlights IESA’s pivotal role in driving industry growth and innovation.
This latest development underscores the Indian government’s commitment to promoting domestic semiconductor production and reducing import dependence, officials said. With these strategic investments, India aims to position itself as a key player in the global semiconductor market, fueling innovation, economic growth and technological self-sufficiency.
