The Union Cabinet, on Thursday 29th February 2024 approved the establishment of 3 semiconductor plants across the country. The announcement was made by Minister of Electronics & Information Technology, Ashwini Vaishnaw, who revealed that the construction of these plants would commence within the next 100 days.
“The Prime Minister has taken an important decision today to set up a semiconductor fab in the country. The first commercial semiconductor fab will be established by Tata and Powerchip-Taiwan, with their plant to be located in Dholera,” Minister Ashwini Vaishnaw stated.
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Tata Electronics and Powerchip from Taiwan to make computer parts
Tata Electronics and Powerchip from Taiwan will start making computer parts in Dholera, Gujarat. Tata Semiconductor Assembly and Test Pvt Ltd will also create a parts factory in Morigaon, Assam, and CG Power will do the same in Sanand, Gujarat with partners from Japan and Thailand.
These plans will make about 20,000 high-tech jobs and 60,000 more indirect jobs. The total money put into these factories will be about INR 1.26 trillion. Tata Electronics’ Dholera plant aims to produce 50,000 wafers every month, which is 3 billion chips per year. The Morigaon plant will make 48 million chips a day and the Sanand plant will create 15 million chips a day.
91,000 Cr to Dholera, 27,000 Cr to Assam, 7,600 Cr to Sanad
Of all the money to be put in, INR 91,000 crore will be given to Dholera, INR 27,000 crore to Assam, and INR 7,600 crore to Sanand. These will add to the INR 22,516 crore factory announced by Micron from the US in Sanand last year. In 2022, Prime Minister Narendra Modi made a new policy to bring global attention to India’s semiconductor industry. Minister Rajeev Chandrasekhar said that the Indian government got investment plans of more than INR 2.50 trillion from big semiconductor companies.
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At an event on Wednesday, Minister of State for Electronics & Technology Rajeev Chandrasekhar said, “Today, investment proposals of more than INR 2.50 trillion have been received by the Government of India from global semiconductor majors. India is fast becoming a semiconductor nation. Just two years ago, it was not even present in the semiconductor ecosystem of the world.”
The approval of these semiconductor plants marks a significant step towards establishing India as a key player in the global semiconductor landscape, fostering technological advancement, and stimulating economic growth.
