On Wednesday, Prime Minister Narendra Modi initiated the start of construction for three semiconductor plants.
These plants, approved by the government last month and valued at over Rs. 1.25 lakh crore, mark a significant step towards bolstering India’s semiconductor industry.
Tata Electronics leads with an investment of Rs. 1,18,000 crores
Tata Electronics will invest Rs. 1,18,000 crores in two facilities: the Tata-PSMC chip foundry at Rs. 91,000 crores and the Tata OSAT facility at Rs. 27,000 crores.
This investment, underscores Tata Electronics’ commitment to the “Make in India, Make for the World” initiative.
The foundation laying ceremony in Dholera was graced by Shri. Ashwini Vaishnav, Minister of Railways, Communications, and Electronics & Information Technology, Shri. Bhupendra Patel, Chief Minister of Gujarat, and executives from Tata Sons and Tata Electronics.
Similarly, Shri Himanta Biswa Sarma, Chief Minister of Assam, attended the event in Jagiroad, Assam.
India’s First AI-enabled Semiconductor Fab
Tata Electronics, in collaboration with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan, is developing India’s first AI-enabled Semiconductor Fabrication Facility in Dholera, Gujarat.
With an investment of up to Rs. 91,000 crores, this facility is poised to create over 20,000 direct and indirect jobs. It will manufacture chips for various applications such as high-performance computing logic, power management ICs, display drivers, and microcontrollers.
With a monthly manufacturing capacity of up to 50,000 wafers, this Fab establishes India as a crucial supply chain partner in the global semiconductor industry.
Semiconductor Assembly and Test (OSAT) Facility in Assam
Tata Electronics is also developing a state-of-the-art Semiconductor Assembly and Test (OSAT) facility in Jagiroad, Assam, with an investment outlay of Rs. 27,000 crore. Strategically located near Guwahati, this facility is expected to create over 27,000 direct and indirect jobs.
This facility will focus on key platform technologies like Wire Bond, Flip Chip, and Integrated Systems Packaging (ISP), crucial for various applications across automotive, communications, computing, and Artificial Intelligence (AI). It will play a pivotal role in the industrialization of North-East India.
Semiconductor ATMP Unit for Specialized Chips by CG Power
Prime Minister Modi also laid the foundation for the CG Power-Renesas Semiconductor ATMP Unit. This unit, with an investment of Rs. 7,600 crore, is established in Sanand, Gujarat, through collaboration between CG Power, Renesas Electronics Corporation, and Stars Microelectronics.
Speaking at the event, virtually, Union Minister of State for Electronics and IT, Skill Development and Entrepreneurship, and Jal Shakti, Shri Rajeev Chandrasekhar, said:
For decades, India has lacked a flourishing tech ecosystem despite its immense potential. Indian talent has left an indelible mark on major semiconductor companies worldwide, and it’s time to foster an ecosystem that nurtures, equips, and trains young Indians, particularly in next-generation chip design, semiconductor research, and manufacturing, among other fields.
The inauguration of the three new semiconductor plants by our Hon’ble Prime Minister Modi ji heralds tremendous opportunities not only for Assam and Gujarat but for the entire nation. With Made in India chips produced domestically, India will establish a robust and significant presence in global value chains — positioning India as a semiconductor hub for the world.