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Cabinet approves 3 Semiconductor Fab Units, Set to Generate 80,000 Jobs

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The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light for the establishment of three semiconductor fabrication (fab) units, marking a significant stride in India's technological advancement. These cutting-edge facilities are poised to commence construction within the next 100 days, promising to create a substantial job market impact.

Tata Electronics Private Ltd (TEPL), in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan, will spearhead the construction of a semiconductor fab in Dholera, Gujarat, with a monthly capacity of 50,000 wafers. Union IT Minister Ashwini Vaishnaw announced an investment of Rs 91,000 crore for this venture. The fab will focus on producing high-performance compute chips with 28 nm technology and power management chips catering to electric vehicles (EVs), telecom, defense, automotive, consumer electronics, display, power electronics, and more.

Simultaneously, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a semiconductor assembly, testing, monitoring, and packing (ATMP) unit in Morigaon, Assam, boasting a daily capacity of 48 million. The Rs 27,000 crore investment aims to pioneer indigenous advanced semiconductor packaging technologies, covering sectors such as automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

In Sanand, Gujarat, CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up the third semiconductor ATMP unit for specialized chips. The unit, with a daily capacity of 15 million, will require an investment of Rs 7,600 crore, focusing on manufacturing chips for consumer, industrial, automotive, and power applications.

In a remarkably short span, the India Semiconductor Mission has achieved four major successes, solidifying the semiconductor ecosystem in the country. Leveraging existing strengths in chip design, India aims to develop capabilities in chip fabrication and advance packaging technologies indigenously, fostering employment creation across various sectors, including downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries.

The 'Programme for Development of Semiconductors and Display Manufacturing Ecosystem' in India, initiated in 2021 with a total outlay of Rs 76,000 crore, underlines the nation's commitment to technological self-reliance. The approval of Micron's semiconductor unit in Sanand, Gujarat, further contributes to the burgeoning semiconductor ecosystem in the region, progressing rapidly toward a robust future.