PM Modi laid foundation of 3 semiconductor plants, 2 in Gujarat, 1 in Assam
In another milestone in India’s effort to enhance its semiconductor ecosystem, Prime Minister Narendra Modi on Wednesday laid the foundation stone of three new chip plants – two in Gujarat and one in Assam. According to the report of news agency ANI, Tata Group is setting up two of these three plants.
As per ANI report, PM Modi participated in the ‘India’s Teched: Chips for Developed India’ event for three semiconductor facilities with a financial implication of around Rs 1.25 lakh crore.
Last month, the Union Cabinet chaired by Prime Minister Narendra Modi had approved the setting up of three more semiconductor units as part of the development of semiconductors and display manufacturing ecosystem in India. All three units – two in Gujarat and one in Assam – will start construction within the next 100 days.
The semiconductor industry in India is still in its nascent stage, with various local and multinational companies intending to tap its huge potential.
The Program for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on December 21, 2021, with a total outlay of Rs. 76,000 crores.
The three approved semiconductor units whose foundation stone has been laid today are:
Tata Electronics Pvt Ltd (“TEPL”) will set up a semiconductor fab at Dholera, Gujarat in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. There will be an investment of Rs 91,000 crore in this fab. PSMC has 6 semiconductor foundries in Taiwan. As per ANI report, the capacity of the Dholera unit will be 50,000 wafer starts per month (WSPM).
CG Power will set up a semiconductor unit in Sanand, Gujarat in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand. This unit will be set up with an investment of Rs 7,600 crore. As per ANI report, the CG Power Semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.
Tata Semiconductor Assembly and Test Private Limited (“TSAT”) will set up a semiconductor unit in Morigaon, Assam. The facility, with a capacity to produce 48 million chips per day, is being built at a cost of Rs 27,000 crore. As per ANI report, the sectors that will be covered include automotive, electric vehicles, consumer electronics, telecom and mobile phones.
These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect employment.
According to ANI report, these units will accelerate job creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing and other semiconductor-consumer industries.
Meanwhile, US chip maker Micron’s high-end semiconductor fabrication plant in Sanand, Gujarat, India’s first, is coming into reality at a rapid pace. As per ANI report, it is expected to become operational in late 2024.
Micron Technology is investing US$2.5 billion (Rs 22,500 crore) to set up an ATMP (assembly, test, marking and packaging) facility at Sanand GIDC-II in Gujarat. Sanand GIDC is a highly industrialized area in Gujarat, home to many national and multinational manufacturing industries.
(With inputs from ANI)