Two of the three semiconductor units approved by Central Government to come up in Gujarat

New Delhi : In a significant move aimed at fortifying India’s semiconductor and display manufacturing capabilities, the Union cabinet, led by Prime Minister Narendra Modi, has given the nod for the establishment of three semiconductor units under the initiative ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’. Notably, two of these cutting-edge facilities are slated to be set up in Gujarat, marking a milestone in the nation’s technological advancement.

Announcing the decision, Union Minister Ashwini Vaishnav unveiled the ambitious plans, revealing that the first semiconductor fab unit in India has been sanctioned by the government. In a strategic partnership, Tata will join forces with Powerchip Taiwan to erect a state-of-the-art plant in Gujarat’s Dholera region. Vaishnav emphasized that construction of the facility will commence within a swift 100-day timeframe. The venture is set to attract an investment totaling a staggering Rs. 91,000 crore and is anticipated to churn out an impressive 50,000 chips each month. The array of sectors to be catered to by this facility spans electric vehicles, telecom, defense, automotive, consumer electronics, display, power electronics, among others.

Furthermore, shedding light on the second unit, Vaishnav outlined the collaborative efforts of CG Power, in conjunction with Renesas Electronics Corporation from Japan and Stars Microelectronics from Thailand, to establish a semiconductor unit in Sanand, Gujarat. This venture, with an investment of Rs. 7,600 crore, is slated to boast a production capacity of 15 million units per day, targeting consumer, industrial, automotive, and power applications.

In a move aimed at bolstering semiconductor manufacturing beyond Gujarat’s borders, the third unit, specializing in Assembly, Testing, Marking, and Packaging (ATMP), is set to be erected in Assam. Tata Semiconductor Assembly and Test Pvt Ltd will spearhead this endeavor in Morigain with a colossal investment of Rs. 27,000 crore. Operating under the banner of TSAT Semiconductor, this facility will focus on indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies. With a projected capacity of 48 million units per day, it will cater to a diverse range of sectors including automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

The approval for these semiconductor units underscores the government’s commitment to fostering a robust indigenous manufacturing ecosystem, poised to propel India to the forefront of technological innovation and self-reliance. As these projects materialize, they are poised to not only bolster the nation’s technological prowess but also create numerous employment opportunities and stimulate economic growth across various sectors.