PM Modi lays foundation for 3 semiconductor plants; 1 in Assam, 2 in Gujarat

Digital Desk: In a momentous leap forward for India's semiconductor industry, Prime Minister Narendra Modi ushered in a new era on Wednesday with the laying of foundation stones for three cutting-edge chip plants – one in Assam and two in Gujarat. Remarkably, Tata Group is leading the charge in establishing two of these three plants.

Participating in the virtual event titled 'India's Techade: Chips for Viksit Bharat,' PM Modi underscored the strategic significance of these semiconductor facilities, representing a substantial financial commitment of approximately Rs 1.25 lakh crore.

The recent approval by the Union Cabinet, under PM Modi's leadership, for three additional semiconductor units marks a significant milestone. These units, slated to commence construction within the next 100 days, are set to significantly bolster India's semiconductor manufacturing landscape, with locations spread across Assam and Gujarat.

Despite being in its nascent stages, India's semiconductor industry holds immense potential, attracting interest from both local and international players. The 'Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India,' initiated in December 2021, highlights the government's dedication to nurturing this vital sector with a substantial outlay of Rs. 76,000 crore.

Among the approved semiconductor units, Tata Electronics Private Limited (TEPL) is partnering with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, to establish a semiconductor fab in Dholera, Gujarat, with a whopping investment of Rs 91,000 crore. Similarly, CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, is slated to set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 7,600 crore.

Significantly, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is spearheading the establishment of a semiconductor unit in Assam’s Morigaon with a capacity to produce 48 million chips per day. With an investment of Rs 27,000 crore, this facility aims to cater to various sectors, including automotive, electric vehicles, consumer electronics, telecom, and mobile phones, thereby contributing to regional development and job creation.

These initiatives are expected to generate substantial employment opportunities, with an estimated 20 thousand advanced technology jobs and about 60 thousand indirect jobs. Furthermore, the establishment of these units is poised to accelerate employment creation in downstream industries such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.

Meanwhile, the progress of Micron Technology's high-end semiconductor fabrication plant in Sanand, Gujarat, further highlights India's growing prowess in semiconductor manufacturing. With an investment of USD 2.5 billion (INR 22,500 crore), Micron's ATMP facility in Sanand GIDC-II is set to become operational by late 2024, contributing to the vibrant industrial landscape of Gujarat and India's semiconductor ecosystem as a whole.

India's stride towards becoming a semiconductor manufacturing hub marks a significant step towards self-reliance and technological advancement, positioning the nation as a global player in the semiconductor industry.