Cabinet approves setting up of three more semiconductor units in India

The three semiconductor units will be established at Dholera in Gujarat, Morigaon in Assam and Sanand in Gujarat.

New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India.

The three semiconductor units will be established at Dholera in Gujarat, Morigaon in Assam and Sanand in Gujarat.

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Union Minister for Electronics and Information Technology, Ashwini Vaishnaw said that all three units will start construction within next 100 days and also highlighted the importance of setting up of a semiconductor unit in Assam.

“All three units will start construction within the next 100 days. Northeast will get its first semiconductor Unit in Assam. Investment in the Assam unit will be 27,000 crore. Chips produced from here will be used by the big automobile companies across the globe. Whenever we used to talk about investment in North-East the concept of technological investment was never discussed. This tradition has been changed by Prime Minister Modi,” Vaishnaw said.

Tata Electronics Private Limited (TEPL) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. This fab will be constructed in Dholera, Gujarat. The investment in this fab will be Rs 91,000 crore. It will have a capacity of 50,000 wafer starts per month (WSPM). This unit will produce high performance compute chips with 28 nm technology. It will produce Power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc, the press release read.

Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam. This unit will be set up with an investment of Rs 27,000 crore. This unit will cover segments such as Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc. It’s capacity will be 48 million per day.
CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat. This unit will be set up with an investment of Rs 7,600 crore. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications. It’s capacity is 15 million per day.

Cabinet in its release also highlighted the strategic importance of these three units.

“Within a very short time, India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will get established in India. India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India with today’s announcement,” it said.

These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs. These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor consuming industries, the release said.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on 21.12.2021 with a total outlay of Rs 76,000 crore.
“In June, 2023, the Union Cabinet had approved the proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit,” the release added.