Prime Minister Narendra Modi has laid the foundation stone for three semiconductor plants worth over Rs 1.25 trillion. The proposed investments, which received Union Cabinet approval on February 29, 2024, include the Tata-Powerchip Semiconductor Manufacturing Corporation (PSMC) chip foundry at Rs 910 billion, the Tata outsourced semiconductor assembly and test (OSAT) facility at Rs 270 billion, and the CG Power-Renesas at Rs 76 billion.
While laying the foundation stone of the three new semiconductor projects virtually, the prime minister noted that the projects announced will help India to become a global semiconductor hub. These three semiconductor facilities will drive economic growth and foster innovation in the country.
According to Ashwini Vaishnaw, Union Minister of Communications, Electronics and Information Technology and Railways, the Dholera plant was expected to start production by the end of 2026. India’s first semiconductor fabrication facility will be set up by Tata Electronics in partnership with Taiwan’s (PSMC) at an estimated cost of Rs 91,000 crore. The facility will be powered by renewable energy. In addition, a dedicated water supply will be provided through a river Narmada canal to the region.
Further, all three projects are being incentivised under the India Semiconductor Mission (ISM) which has an outlay of Rs 760 billion.
Furthermore, Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology and Skill Development and Entrepreneurship, said, “For decades, India was deprived of a thriving tech ecosystem despite having immense potential. Indian talent has made its mark on every major semiconductor company globally, and it is finally time to build an ecosystem that will encourage, skill, and train young Indians, especially in next-generation chip design, semiconductor research, and manufacturing, among other areas. The three new semiconductor plants inaugurated by the Prime Minister will bring tremendous opportunities not just for Assam and Gujarat but for the whole nation. Made in India chips manufactured in India will help create a strong and significant presence for India in global value chains — it will make India a semicon hub for the world.”
