The Union Cabinet has approved the establishment of three semiconductor units under the development of semiconductors and display manufacturing ecosystem in India with a total investment of Rs 1.25 trillion. All three units will start construction within next 100 days.
The programme for development of semiconductors and display manufacturing ecosystem in India was notified on December 21, 2021 with a total outlay of Rs 760 billion.
The approved three semiconductor units are:
Semiconductor Fab with 50,000 wfsm capacity
Tata Electronics Private Limited (TEPL) will set up a semiconductor fabrication plant (fab) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. This fab will be constructed in Dholera, Gujarat, with the investment worth Rs 910 billion, and it has the capacity of 50,000 wafer starts per month (WSPM). Further, it will the cover the segments of high-performance compute chips with 28 nm technology, and power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc. These chips are high voltage, high current applications.
Semiconductor ATMP unit in Assam
Tata Semiconductor Assembly and Test Private Limited (TSAT) will set up an assembly, testing, monitoring and packing (ATMP) semiconductor unit in Morigaon, Assam with an investment of Rs 270 billion. TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and integrated system in package (ISIP) technologies. The fab has the capacity of 48 million per day, and will cover the segment of automotive, EVs, consumer electronics, telecom, mobile phones, etc.
Semiconductor ATMP unit for specialised chips
CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat with an investment of Rs 76 billion. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive, and power applications, and will have a capacity of 5 million per day.
With these units, India will develop capabilities in chip fabrication, and advanced packaging technologies will be indigenously developed in India with this approval. Within a very short time, India Semiconductor Mission (ISM) has achieved four big successes as India already has deep capabilities in chip design.
Furthermore, these units will generate direct employment of 20,000 and advanced technology jobs and about 60,000 indirect jobs. These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor consuming industries.
Industry reactions:
Commenting on the development, Lt. Gen. Dr. S.P. Kochhar, Director General, Cellular Operators Association of India (COAI), said, “The Union Cabinet’s approval on the establishment of three semiconductor units under the ISM is a positive and commendable development. This is a progressive step for India and the strongly emerging manufacturing ecosystem in the country. We believe this serves as an excellent example for our nation towards attaining self-sufficiency in line with the Prime Minister’s vision of Atmanirbharta and will further inspire India’s goals to become a global manufacturing and supply chain hub. Moreover, with the output from these facilities being poised to benefit various sectors and segments, it is expected to provide a fillip to the Digital India mission through increased technological prowess and advancement of the indigenous industrial ecosystem, besides generating employment and attracting more investments in the country.”
