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Saturday, February 8, 2025

India Boosts Chip Production with 3 New Semiconductor Fab Units

The Union Cabinet under Prime Minister Narendra Modi has granted approval for the building of three cutting-edge semiconductor fabrication (fab) units in India.
These units will start construction in 100 days. This unusual move should create 20,000 high-tech and 60,000 indirect jobs.

Tata Electronics Develops Semiconductors

Together with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC), Tata Electronics Private Ltd. (TEPL) will establish a 50,000-wafer-per-month semiconductor foundry. This Dholera, Gujarat, factory will define India’s semiconductor journey. An ambitious Rs 91,000 crore project will develop 28 nm top-performance computation and power management chips for EVs, telecom, defense, automotive, consumer electronics, display, and power electronics.

Ashwini Vaishnaw, Union IT Minister, said, “This initiative propels India into the global semiconductor arena and solidifies our position as a hub for advanced technology manufacturing.”

Assam Prepares Semiconductor Testing

In Morigaon, Assam, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will open an ATMP unit. This plant, with a daily capacity of 48 million units, is vital to developing indigenous advanced semiconductor packaging methods. This business will service automotive, electric vehicles, consumer electronics, communications, and mobile phones with a Rs 27,000 crore investment.

“The TSAT semiconductor unit will contribute significantly to our ‘Make in India’ initiative, fostering innovation and self-reliance in semiconductor technology,” stated a government rep.

In Gujarat, CG Power partners with Renesas and Stars Microelectronics

CG Power, Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, developed India’s third semiconductor. In Sanand, Gujarat, this semiconductor ATMP unit will operate with a daily capacity of 15 million units and cost Rs 7,600 crore. The unit will make chips for consumer electronics, industrial, automotive, and power applications.

“This collaboration brings together the best of global expertise to boost India’s semiconductor capabilities,” said CG Power.

These three semiconductor units signal a milestone for India in semiconductor manufacturing. The India Semiconductor Mission quickly built a strong semiconductor ecosystem.

Semiconductor Ecosystem Increases Employment

India, known for chip design, will improve its chip manufacturing skills. This announcement will indigenously create sophisticated packaging technologies that will boost downstream manufacturing jobs in automotive, electronics, telecom, and industrial manufacturing.

“The ‘Programme for Development of Semiconductors and Display Manufacturing Ecosystem’ initiated in 2021 has played a pivotal role in fostering these advancements,” a diplomat stated. “These units are not just factories; they are catalysts for economic growth, innovation, and job creation.”

Last June, the Cabinet approved a Micron semiconductor plant in Sanand, Gujarat, demonstrating the government’s commitment to a strong semiconductor ecosystem.

India will become a global semiconductor manufacturer when these units are developed swiftly, consolidating its technological and innovation supremacy.

Nitin Gohil
Nitin Gohil
A Mumbai-based tech professional with a passion for writing about his field: through his columns and blogs, he loves exploring and sharing insights on the latest trends, innovations, and challenges in technology, designing and integrating marketing communication strategies, client management, and analytics. His favourite quote is, "Let's dive into the fascinating world of tech together."

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