Cabinet approves 3 chip plants, including two by Tata, at estimated investment of Rs 1.26 lakh crore
FEBRUARY 29, 2024
The Union Cabinet approved three semiconductor plant proposals, two in Gujarat and one in Assam, for an estimated cost of Rs 1.26 lakh crore.
The proposals include India’s first semiconductor fabrication plant or fab by Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) in Gujarat’s Dholera at a projected cost of Rs 91,000 crore. The JV will have a capacity of 50,000 wafers per month, IT minister Ashwini Vaishnaw said on February 29.
Chip fab scheme will employ 26,000 people directly and nearly 1 lakh indirectly, Vaishnaw said.
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“Today, the Prime Minister has taken an important decision to set up a semiconductor fab in the country. The first commercial semiconductor fab will be set up by Tata and Powerchip-Taiwan, whose plant will be in Dholera. After the Micron semiconductor plant in Sanand, a fab will now come up in Dholera,” said Vaishnaw.
“A typical semiconductor fab timeline for production is 3-4 years. But will try to compress it. Our country has today developed the assembly, testing, marking and packaging (ATMP) technology. Over a period of last many months, we have been able to develop ATMP technology,” added Vaishnaw.
The Cabinet also approved Tata Semiconductor Assembly and Test Pvt. Ltd’s chip assembly and testing unit in Assam at an investment of Rs 27,000 crore, Vaishnaw said.
CG Power and Japan’s Renesas will also set up a semiconductor plant in Gujarat’s Sanand at an estimated cost of Rs 7,600 crore, producing 15 million chips per day, Vaishnaw added.
These plants are in addition to a Rs 22,516-crore chip assembly plant being set up by US-based memory chip maker Micron.
The approved three semiconductor units are:
1. Semiconductor Fab with 50,000 wafers per month capacity:
Tata Electronics Pvt Ltd will set up a semiconductor fab in partnership with PSMC, Taiwan.
Investment: This fab will be constructed in Dholera, Gujarat. Investment in this fab will be Rs 91,000 crore.
Technology partner: PSMC is renowned for its expertise in logic and memory foundry segments. PSMC has six semiconductor foundries in Taiwan.
Capacity: 50,000 wafer starts per month (WSPM)
Segments covered
- High-performance compute chips with 28 nm technology
- Power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc. Power management chips are high voltage, high current applications.
2. Semiconductor ATMP unit in Assam:
Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam.
Investment: This unit will be set up with an investment of Rs 27,000 crore.
Technology: TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies.
Capacity: 48 million per day
Segments covered: Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.
3. Semiconductor ATMP unit for specialised chips:
CG Power, in partnership with Renesas Electronics Corp., Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat.
Investment: This unit will be set up with an investment of Rs 7,600 crore.
Technology partner: Renesas is a leading semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analogue, power, and system-on-chip products.
Segments covered: The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.
Capacity: 15 million per day
“Within a very short time, India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will be established in India. India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication.
“Advanced packaging technologies will be indigenously developed in India with today’s announcement,” said the government in a statement.
These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs. These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries, the government said.
