Union Cabinet nod to Rs 1.26 lakh crore chip-making units

India's major leap into semiconductor manufacturing. The government has taken a significant step toward becoming self-reliant in semiconductor production by approving the establishment of 3 semiconductor fabrication units.

Semiconductors (essential for defence, automobiles and telecommunications sectors) have grown into a key geopolitical battleground, with the US, Japan and China investing heavily in developing domestic capabilities.

The units which will make chips for sectors including defence, automobiles and telecommunications, will begin construction within the next 100 days, Telecom Minister Ashwini Vaishnaw told reporters after the cabinet meeting.

As global demand for semiconductors surges, India's initiative to build domestic chip-making capabilities signifies a major leap towards - Technological autonomy and reduced import dependency, particularly from manufacturing giants like Taiwan.

The approvals involve an investment of Rs 1.26 lakh crore ($15.2 billion) including Rs 76,000 crore support under the 'Development of Semiconductors and Display Manufacturing Ecosystem' programme.

* A semiconductor fab in Dholera, Gujarat: This will be established by Tata Electronics in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp.

• The facility is projected to produce 50,000 wafers per month and will require an investment of Rs 91,000 crore.
• It will specialise in producing high-performance computer chips using 28 nm technology that will find applications in EVs, telecom, defence, etc.

* A semiconductor unit in Morigaon, Assam: This will be set up by the Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), with an investment of Rs 27,000 crore.

• This is poised to churn out an impressive 48 million chips per day, catering to the automotive and electric vehicle sectors.

* A semiconductor unit in Sanand, Gujarat: This will be established by CG Power, in conjunction with Japan’s Renesas Electronics Corp and Stars Microelectronics of Thailand, with an investment of Rs 7,600 crore.

• The construction of these plants will commence within the next 100 days.
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In June last year, the Cabinet approved a proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat. The approvals are part of the Modi government’s ambitions to make India a chipmaker for the world and cutting reliance on countries like Taiwan.

Vaishnaw said the Tata plant at Dholera will produce high-performance compute chips with 28 nm technology for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display and power electronics.

"The announcement by Union IT Minister Shri Ashwini Vaishnaw on the approval of three more semiconductor units is pathbreaking as it paves the way for redefining India’s contribution to the global semiconductor industry. This is something we have been waiting for the last 40 years and now it's finally happening. Delighted to note that a Semiconductor Fab with 50,000 wfsm capacity is being put up by Tata Electronics Private Limited (“TEPL”) along with two semiconductor ATMP units being set up by Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) in Morigaon, Assam and another one which is a joint venture between Renesas Electronics Corporation and CG Power in Sanand, Gujarat. In addition to bolstering India's Semiconductor Mission effort, all three entities will significantly contribute to the nation's employment creation. I truly believe this step will go a long way in the creation of a thriving semiconductor ecosystem in the nation for the world.” -Dr Ajai Chowdhry, Founder & Chairman, EPIC Foundation, Co-Founder, HCL