Semiconductor industry in India: Three proposals for semiconductor plants, two planned for Gujarat and one for Assam, with a combined estimated cost of Rs 1.26 lakh crore, have been approved by the Union Cabinet. One of these proposals, led by Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) and Tata Electronics, is to establish the first semiconductor fabrication plant, or fab, in India in Dholera, Gujarat.
IT Minister Ashwini Vaishnaw revealed on February 29 that this massive project is expected to require an investment of Rs 91,000 crore and is anticipated to have a production capacity of 50,000 wafers per month. Vaishnaw also emphasised the significant job prospects that will result from this chip fabrication project, with roughly 26,000 people expected to be directly employed and nearly 1 lakh indirectly
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Cabinet Approval: Driving Technological Advancement
Semiconductor industry in India: The prime minister decided today to build a semiconductor factory in the nation, which is a big decision. The ground-breaking commercial semiconductor fab will be located in Dholera and will be the result of a partnership between Tata and Powerchip-Taiwan. With the opening of the Micron semiconductor plant in Sanand, this is a major step forward that will eventually lead to the construction of a fab in Dholera, according to Vaishnaw.
While it typically takes three to four years to produce a semiconductor fab, efforts will be made to expedite the process.Recent advancements in Assembly, Testing, Marking, and Packaging (ATMP) technology have been made in our country. Significant advancements in ATMP technology have been made over the last few months, according to Vaishnaw’s additional explanation.
Semiconductor Industry in India: Impact on Employment
In addition, Vaishnaw declared that the Rs 27,000 crore chip assembly and testing facility in Assam, India, owned by Tata Semiconductor Assembly and Test Pvt. Ltd., had received Cabinet approval.
Not only will these initiatives create employment opportunities, but the semiconductor fab scheme is expected to employ 26,000 people directly and nearly 1 lakh indirectly. These initiatives will also foster skill development and expertise in advanced technologies.
Additionally, CG Power and Japan’s Renesas are slated to establish a semiconductor plant in Gujarat’s Sanand, projected to cost Rs 7,600 crore and capable of producing 15 million chips per day, as stated by Vaishnaw.
These initiatives supplement the ongoing development of a Rs 22,516-crore chip assembly plant by the US-based memory chip maker Micron.
Semiconductor Industry in India: Details of the Plants
1. Semiconductor Fab with 50,000 wafers/month capacity: In collaboration with PSMC, Taiwan, Tata Electronics Pvt Ltd plans to establish a semiconductor fab.
Investment: Dholera, Gujarat will be the site of the fab’s construction. A sum of Rs 91,000 crore will be invested in this factory.
Technology partner: PSMC is well-known for its proficiency in the memory foundry and logic industries. Six semiconductor foundries are owned by PSMC in Taiwan.
50,000 wafer starts per month (WSPM) is the capacity.
28 nm-based high-performance computing chips
Chips for power management used in telecom, defence, automotive, consumer electronics, display, power electronics, and electric vehicles (EVs). Applications for power management chips involve high voltage and high current.
2. Semiconductor ATMP unit in Assam: Morigaon, Assam will host a semiconductor unit from Tata Semiconductor Assembly and Test Pvt Ltd (TSAT).
Investment: A total of Rs 27,000 crore will be needed to establish this unit.
Technology: TSAT Semiconductors is creating cutting-edge, homegrown semiconductor packaging technologies, such as integrated system in package (ISIP) and flip chip.
Daily Capacity: 48 million
Covered segments include telecom, mobile phones, consumer electronics, automotive, and electric vehicles.
3. Semiconductor ATMP unit for specialised chips: CG Power will establish a semiconductor unit in Sanand, Gujarat, in collaboration with Renesas Electronics Corp., Japan, and Stars Microelectronics, Thailand.
Investment: A total of Rs 7,600 crore will be needed to establish this unit.
Technology partner: Leading semiconductor manufacturer Renesas specialises in specialised chips. It is a major player in microcontrollers, analogue, power, and system-on-chip products and runs 12 semiconductor facilities.
Segments covered: Chips for consumer, industrial, automotive, and power applications will be produced by the CG Power Semiconductor Unit.
Importance of Semiconductor Manufacturing in India
Semiconductor industry in India: Chip design capabilities. These units will help our nation advance its chip fabrication capabilities. With today’s announcement, advanced packaging technologies will be developed in India,” the government declared in a statement.
Twenty thousand advanced technology jobs will be directly employed by these units, and roughly sixty thousand indirect jobs will be produced. According to the government, these units will hasten the creation of jobs in the downstream automotive, electronics, telecom, industrial, and other semiconductor-consuming industries.
Frequently Asked Questions (FAQs):
- What is the significance of the Cabinet’s approval of semiconductor plants?
- The approval signifies a major step towards self-reliance in semiconductor manufacturing and technological advancement in India.
- How will these semiconductor plants impact employment?
- The plants are expected to generate thousands of direct and indirect job opportunities, fostering skill development and expertise in advanced technologies.
- What sectors will benefit from the establishment of these semiconductor units?
- Critical sectors such as automotive, consumer electronics, telecommunications, and industrial manufacturing are poised to benefit significantly.
- What role do these plants play in reducing India’s dependency on imports?
- By manufacturing semiconductor chips domestically, India can reduce its reliance on imports and strengthen its strategic autonomy in key sectors.
- How will the semiconductor industry contribute to India’s economic growth?
- The semiconductor industry will drive innovation, attract investments, and stimulate economic activity, ultimately contributing to India’s overall growth trajectory.
