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Indian Semiconductor Mission Gains Momentum: Cabinet Greenlights Three New Semiconductor Units

New Delhi: The Union Cabinet has given the green light for the establishment of three semiconductor units as part of the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative. These units are slated to commence construction within the next 100 days, marking a significant milestone for the India Semiconductor Mission.

The program, initiated on December 21, 2021, with a total budget of Rs. 76,000 crore, aims to bolster semiconductor and display manufacturing within the country. Following the approval of Micron’s proposal for a semiconductor unit in Sanand, Gujarat, in June 2023, progress has been rapid, laying the groundwork for a robust semiconductor ecosystem in the vicinity.

The three newly approved semiconductor units are as follows:

1. Semiconductor Fab with a capacity of 50,000 wafer starts per month (WSPM):

   Tata Electronics Private Limited (TEPL) will collaborate with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, to establish this fab in Dholera, Gujarat, with an investment of Rs. 91,000 crore. PSMC brings expertise in logic and memory foundry segments, boasting six semiconductor foundries in Taiwan. The fab will specialize in high-performance compute chips using 28 nm technology and power management chips for various applications.

2. Semiconductor ATMP unit in Assam:

   Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will invest Rs. 27,000 crore to set up this unit in Morigaon, Assam. TSAT focuses on developing indigenous advanced semiconductor packaging technologies, including flip chip and integrated system in package (ISIP) technologies. The unit will cater to segments such as automotive, electric vehicles, consumer electronics, and telecom, with a capacity of 48 million units per day.

3. Semiconductor ATMP unit for specialized chips:

   CG Power, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will establish this unit in Sanand, Gujarat, with an investment of Rs. 7,600 crore. Renesas, a leading semiconductor company specializing in specialized chips, will contribute its expertise. The unit will manufacture chips for consumer, industrial, automotive, and power applications, with a capacity of 15 million units per day.

These units hold strategic importance as they mark significant progress for the India Semiconductor Mission, establishing a solid semiconductor ecosystem in the country. With these units, India aims to not only strengthen chip design capabilities but also develop expertise in chip fabrication and advanced packaging technologies domestically.

In terms of employment potential, these units are expected to create 20,000 direct advanced technology jobs and around 60,000 indirect jobs, accelerating employment opportunities in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries.

Tags: Governance