PM Modi Lays Foundation For 3 Semiconductor Plants; One In Assam, Two In Gujarat

In a significant stride towards bolstering India's semiconductor ecosystem, Prime Minister Narendra Modi marked a pivotal moment on Wednesday by laying the foundation stones for three new chip plants – one in Assam and two in Gujarat.

Notably, Tata Group is spearheading the establishment of two out of these three plants.

Participating in the virtual event titled 'India's Techade: Chips for Viksit Bharat,' PM Modi emphasized the strategic importance of these semiconductor facilities, which collectively represent a substantial financial commitment of approximately Rs 1.25 lakh crore.

The recent approval by the Union Cabinet, under the leadership of PM Modi, for the establishment of three additional semiconductor units marks a significant milestone. Scheduled to commence construction within the next 100 days, these units, spread across Assam and Gujarat, are poised to contribute significantly to India's semiconductor manufacturing landscape. 

While India's semiconductor industry is still in its nascent stages, it holds immense potential, attracting interest from both local and international players. The 'Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India,' initiated on December 21, 2021, underscores the government's commitment to nurturing this vital sector with a substantial outlay of Rs. 76,000 crore. 

Among the approved semiconductor units, Tata Electronics Private Limited (TEPL) is partnering with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, to establish a semiconductor fab in Dholera, Gujarat, with an investment of Rs 91,000 crore. Similarly, CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, is slated to set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 7,600 crore. 

Significantly, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is leading the establishment of a semiconductor unit in Assam’s Morigaon with a capacity to produce 48 million chips per day. This facility, with an investment of Rs 27,000 crore, aims to cater to various sectors, including automotive, electric vehicles, consumer electronics, telecom, and mobile phones, thereby contributing to regional development and job creation. 

These initiatives are expected to generate substantial employment opportunities, both directly and indirectly, with an estimated 20 thousand advanced technology jobs and about 60 thousand indirect jobs. Furthermore, the establishment of these units is poised to accelerate employment creation in downstream industries such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing. 

Meanwhile, the progress of Micron Technology's high-end semiconductor fabrication plant in Sanand, Gujarat, further underscores India's growing prowess in semiconductor manufacturing.

With an investment of USD 2.5 billion (INR 22,500 crore), Micron's ATMP facility in Sanand GIDC-II is slated to become operational by late 2024, contributing to the vibrant industrial landscape of Gujarat and India's semiconductor ecosystem as a whole.

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