Prime Minister Narendra Modi's recent announcement regarding the establishment of three semiconductor plants marks a significant stride in enhancing India's semiconductor ecosystem. These plants, set to be located in Gujarat and Assam, are poised to invigorate the country's tech sector and foster economic growth.
Foundation Stone Laid for Three Semiconductor Plants
In a virtual event titled 'India’s Techade: Chips for Viksit Bharat' PM Modi unveiled plans for constructing three semiconductor facilities with an estimated investment of approximately Rs 1.25 lakh crore. This initiative underscores the government's commitment to bolstering indigenous semiconductor manufacturing capabilities.
India is set to become a prominent semiconductor manufacturing hub. The three facilities will drive economic growth and foster innovation.https://t.co/4c9zV3G9HL— Narendra Modi (@narendramodi) March 13, 2024
Key Investments and Collaborations
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Tata Group's Contribution: Tata Group takes the lead in this endeavor by spearheading two out of the three semiconductor projects. Tata Electronics Private Limited (TEPL) will collaborate with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan to establish a semiconductor fabrication plant in Dholera, Gujarat. With an investment of Rs 91,000 crore, this facility aims to ramp up production with a capacity of 50,000 wafer starts per month (WSPM).
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CG Power's Venture: In another strategic move, CG Power, in partnership with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, will establish a semiconductor unit in Sanand, Gujarat. This venture, with an investment of Rs 7,600 crore, will focus on manufacturing chips for diverse applications including consumer electronics, industrial equipment, automotive, and power sectors.
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Tata's Presence in Assam: Additionally, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a semiconductor unit in Morigaon, Assam. With an investment of Rs 27,000 crore, this facility is slated to produce 48 million chips per day, catering to various sectors such as automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
India's rapid progress is driving confidence in our Yuva Shakti. pic.twitter.com/Ax9zrMvAJf— PMO India (@PMOIndia) March 13, 2024
Economic Implications and Job Creation
These initiatives are projected to generate approximately 20 thousand advanced technology jobs and an additional 60 thousand indirect employment opportunities. Moreover, they are expected to spur growth in downstream industries such as automotive, electronics manufacturing, telecom, and industrial manufacturing, thereby contributing to India's economic development.
Chip manufacturing will take India towards self-reliance, towards modernity. pic.twitter.com/6n0YMhnlH7— PMO India (@PMOIndia) March 13, 2024
Micron's Contributions to India's Semiconductor Landscape
In parallel to these domestic initiatives, American chip maker Micron is set to establish its high-end semiconductor fabrication plant in Gujarat's Sanand. Expected to commence operations in late 2024, this facility represents India's first high-end semiconductor fabrication plant. Micron's investment of $2.5 billion (INR 22,500 crore) further underscores the growing importance of India in the global semiconductor supply chain.
Additionally, Micron Technology plans to establish an ATMP (assembly, test, marking, and packaging) facility in Gujarat’s Sanand GIDC-II, further bolstering India's semiconductor manufacturing capabilities.
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