In a crucial development, the Indian Union Cabinet has given the green light for the establishment of three semiconductor units, a move aimed at reducing the country’s reliance on imported chips. These imported chips are vital for critical sectors such as defense, automobiles, and telecommunications. The total investment for these units is an impressive Rs 1.26 lakh crore.
The first semiconductor unit, Tata Electronics Semiconductor Fab, will be set up in Dholera, Gujarat, with an investment of Rs 91,000 crore. This facility is projected to produce 50,000 wafers per month and is a collaboration between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp.
The Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), as the second unit, is scheduled for establishment in Morigaon, Assam, backed by a significant investment of Rs 27,000 crore. Simultaneously, the third unit, CG Power-Renesas Semiconductor Unit, will take root in Sanand, Gujarat, supported by a substantial investment of Rs 7,600 crore.
These semiconductor units are a strategic step towards achieving self-reliance in semiconductor production. Piyush Goyal, Union Minister for Commerce and Industry, stated, “This decision is a significant step toward achieving self-reliance in semiconductor production. It will strengthen India’s position in the global semiconductor market.”
Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, highlighted the positive impact on employment, stating, “The establishment of semiconductor units in Assam will create employment opportunities and boost the local economy.”
Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology, emphasized these units’ role in reducing dependence on imported chips, saying, “These units will play a crucial role in reducing our dependence on imported chips and promoting domestic chip manufacturing.”
Construction for these semiconductor units is set to commence within the next 100 days. This initiative aligns with India’s broader vision for a robust semiconductor and display manufacturing ecosystem, marking a significant milestone in the country’s journey towards self-sufficiency in semiconductor production.
