India Approves Establishment of 3 Semiconductor Units to Boost Domestic Production

In a significant move towards bolstering India's self-reliance in semiconductor production, the Union Cabinet has given its nod to the establishment of three semiconductor units. This groundbreaking decision, slated for implementation within the next 100 days, marks a crucial milestone in India's quest for semiconductor self-sufficiency.

This initiative is a key component of the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, kickstarted on December 21, 2021, with a substantial allocation of Rs. 76,000 crore.

Earlier in June 2023, the Union Cabinet had approved a proposal by Micron to set up a semiconductor unit in Sanand, Gujarat, signaling a rapid progression in construction.

Semiconductor Units Overview:

• Semiconductor Fab with 50,000 wfsm capacity:

  • Partnership: Tata Electronics Private Limited (TEPL) collaborates with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan.

  • Location: Dholera, Gujarat.

  • Investment: Rs. 91,000 crore.

  • Focus: Producing high-performance compute chips and power management chips for various sectors.

• Semiconductor ATMP unit in Assam:

  • Entity: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT).

  • Location: Morigaon, Assam.

  • Investment: Rs. 27,000 crore.

  • Specialization: Advanced semiconductor packaging technologies for automotive, consumer electronics, and telecom.

• Semiconductor ATMP unit for specialized chips:

  • Partnerships: CG Power in collaboration with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand.

  • Location: Sanand, Gujarat.

  • Investment: Rs. 7,600 crore.

  • Focus: Manufacturing chips for consumer, industrial, automotive, and power applications.

The establishment of these semiconductor units is anticipated to create approximately 20,000 direct jobs in advanced technology sectors and around 60,000 indirect jobs. This move is poised to expedite employment generation across diverse industries, including automotive, electronics manufacturing, and telecom, thereby fostering robust economic growth and technological advancement in the country.

Expected Impact

The establishment of these three semiconductor units is anticipated to have a significant positive impact on the Indian economy and technological landscape:

• Job Creation: It is estimated to generate around 20,000 direct jobs in advanced technology sectors and approximately 60,000 indirect jobs across various industries.

• Economic Growth: By fostering domestic chip production, India aims to reduce its dependence on foreign imports and stimulate economic growth in related sectors like automotive, electronics manufacturing, and telecom.

• Technological Advancement: This initiative is expected to accelerate India's technological progress by establishing a robust domestic semiconductor ecosystem, promoting research and development, and fostering innovation in the field.