Union Cabinet Approves Establishment of Three Semiconductor Units

In a bid to bolstering India’s semiconductor manufacturing capabilities, the Union Cabinet has approved the establishment of three cutting-edge semiconductor units. This decision marks a crucial step in the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ initiative, with all three units set to commence construction within the next 100 days.

The ambitious Programme for Development of Semiconductors and Display Manufacturing Ecosystem, notified on 21st December 2021 with a whopping outlay of Rs. 76,000 crore, has paved the way for these groundbreaking investments.

- Advertisement -

The Three Approved Semiconductor Units:

Semiconductor Fab with 50,000 wfsm Capacity:

1. • Investment: Tata Electronics Private Limited (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan will embark on this venture, with an investment totaling Rs. 91,000 crore.
   • Location: The semiconductor fab will be constructed in Dholera, Gujarat.
   • Technology Partner: PSMC, renowned for its expertise in logic and memory foundry segments, operates 6 semiconductor foundries in Taiwan.
   • Capacity: This facility will boast a capacity of 50,000 wafer starts per month (WSPM).
   • Segments Covered: It will focus on high-performance compute chips with 28 nm technology and power management chips crucial for various sectors including electric vehicles (EV), telecom, defense, automotive, consumer electronics, display, and power electronics.

Semiconductor ATMP Unit in Assam:

1. • Investment: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish this unit in Morigaon, Assam, with an investment of Rs. 27,000 crore.
   • Technology: TSAT is pioneering indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies.
   • Capacity: With a capacity of 48 million per day, this unit will cater to automotive, electric vehicles, consumer electronics, telecom, and mobile phones industries.

Semiconductor ATMP Unit for Specialized Chips:

1. • Investment: CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will establish this unit in Sanand, Gujarat, with an investment of Rs. 7,600 crore.
   • Technology Partner: Renesas Electronics is a leading semiconductor company specializing in microcontrollers, analog, power, and System on Chip (SoC) products, operating 12 semiconductor facilities globally.
   • Segments Covered: The CG Power semiconductor unit will manufacture chips for consumer, industrial, automotive, and power applications.
   • Capacity: This unit will have a capacity of 15 million per day.

Strategic Importance and Employment Potential

These initiatives mark significant progress for the India Semiconductor Mission, establishing a robust semiconductor ecosystem in the country. India’s strength in chip design will now be complemented by capabilities in chip fabrication and the development of advanced packaging technologies.

These units are expected to create 20 thousand direct advanced technology jobs and around 60 thousand indirect jobs. Additionally, they will accelerate employment opportunities in downstream industries such as automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming sectors.