India Approves $15 Billion Investment in Semiconductor Plants, Aims to Become Chip Hub

India Approves $15 Billion Investment in Semiconductor Plants, Aims to Become Chip Hub

Key Points:

  • India approves construction of three semiconductor plants with investments exceeding $15 billion.
  • Tata Electronics, Tata Semiconductor Assembly and Test Pvt Ltd, and CG Power lead the establishment of these facilities.
  • Focus areas include chip fabrication, advanced semiconductor packaging technologies, and chip production for various industries.
  • Construction to begin within 100 days is expected to create 20,000 direct jobs and 60,000 indirect jobs.

India has greenlit the construction of three semiconductor plants with investments exceeding $15 billion, marking a significant step toward its ambition of becoming a major chip manufacturing hub.

According to a government statement on Thursday, these plants aim to bolster India’s capabilities in chip fabrication, complementing its existing strengths in chip design. The move underscores India’s aspirations to emulate the semiconductor prowess of countries like the U.S., Taiwan, and South Korea while attracting foreign investment to bolster its semiconductor ecosystem.

Tata Electronics is slated to partner with Taiwan’s Powerchip Semiconductor Manufacturing Corp to establish one of the fabrication plants in Dholera, Gujarat, with an investment of approximately $11 billion. This facility will focus on mature 28-nanometer technology, catering to automobile, consumer electronics, and defense industries.

Additionally, Tata Semiconductor Assembly and Test Pvt Ltd will spearhead the construction of the second plant in Morigaon, Assam, with an investment of $3.26 billion. This facility will concentrate on developing indigenous advanced semiconductor packaging technologies, including flip chips and integrated systems in package technologies, targeted at the automotive, EV, and consumer electronics segments.

Meanwhile, CG Power, in collaboration with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics, will establish the third factory in Sanand, Gujarat, specializing in chips for consumer, industrial, automotive, and power applications, with an investment of nearly $1 billion.

Construction for all three factories is set to commence within the next 100 days, with an expected direct creation of 20,000 advanced technology jobs and approximately 60,000 indirect jobs. India’s Semiconductor Mission, initiated in June 2023, has already achieved significant milestones, including approving Micron for setting up a semiconductor unit in Sanand, Gujarat. These endeavors are poised to bolster India’s semiconductor ecosystem and enhance its global competitiveness.

Global chip manufacturers, seeking to diversify operations amid geopolitical uncertainties, are increasingly eyeing India as a favorable destination. Taiwan Semiconductor Manufacturing Company, for instance, recently inaugurated a new plant in Japan, underscoring the growing momentum in reshaping the global semiconductor landscape.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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