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India approves investments totaling $15 billion for semiconductor plants.

ByYasmeeta Oon

Mar 4, 2024
India greenlights investments totaling $15 billion for semiconductor plants.

India approves investments totaling $15 billion for semiconductor plants.

In a significant move to bolster its semiconductor industry, India has approved a massive investment of up to $15.2 billion (1.26 trillion Indian rupees) to construct three new semiconductor plants. This strategic initiative, including the establishment of India’s first semiconductor fab facility, marks the country’s ambitious endeavor to compete with global powerhouses like China and Taiwan in the fiercely competitive chip market.

Setting the Stage for Semiconductors: The Indian Government’s Bold Move

  • Semiconductor Plant Allocation: The Indian cabinet’s approval paves the way for the construction of three semiconductor plants, each catering to distinct market segments and technologies.
  • First Semiconductor Fab Facility: A landmark decision by the Indian government greenlights the establishment of the country’s inaugural semiconductor fab facility, marking a significant milestone in India’s semiconductor journey.

Breakdown of Approved Semiconductor Investments

FacilityInvestmentLocationProduction CapacityTarget Markets
Semiconductor Fab Facility (Tata Group & Power Chip)$11.1 billion (approx. 921.18 billion INR)Dholera, Gujarat50,000 wafers/month, 3 billion chips/yearHigh-power computers, electric vehicles, telecom, power electronics
Semiconductor Assembly & Testing Unit (Tata Semiconductor Assembly and Test)$3.2 billion (approx. 266.16 billion INR)Assam48 million chips/dayAutomotive, electric vehicles, consumer electronics, telecom, mobile phones
Specialized Chip Facility (Renesas Electronics, Stars Microelectronics & CG Power)$916 million (approx. 76.28 billion INR)Sanand, Gujarat15 million chips/dayDefense, space, electric vehicles, high-speed trains

Advancing India’s Semiconductor Landscape: Key Developments

  • Semiconductor Fab Facility: The joint venture between Tata Group and Taiwan’s Power Chip will be located in the Dholera region of Gujarat. With a focus on general-purpose applications, the facility is poised to produce 3 billion chips annually for various market segments, including high-power computers, electric vehicles, telecom, and power electronics.
  • Semiconductor Assembly & Testing Unit: Tata Semiconductor Assembly and Test’s unit in Assam is set to become India’s third semiconductor unit. With a production capacity of 48 million chips per day, the facility will cater to a diverse range of industries, including automotive, consumer electronics, and telecom.
  • Specialized Chip Facility: Japan’s Renesas Electronics and Thailand’s Stars Microelectronics, in collaboration with India’s CG Power, will establish a specialized chip facility in Sanand, Gujarat. This facility will focus on niche sectors such as defense, space, electric vehicles, and high-speed trains, with a daily production capacity of 15 million chips.

Challenges and Opportunities

While India’s semiconductor ambitions are commendable, the journey ahead is fraught with challenges and opportunities:

  • Tackling Complex Application Processes: Streamlining application processes and fostering a conducive ecosystem for semiconductor manufacturing will be crucial to attracting international players.
  • Building Skilled Labor Force: Investing in skill development programs to nurture a talented pool of semiconductor professionals will be essential to sustaining the industry’s growth.
  • Attracting Foreign Investment: India’s incentives and investment-friendly policies aim to entice foreign semiconductor manufacturers to establish a presence in the country, contributing to its semiconductor ecosystem’s expansion.

Future Semiconductor Initiatives

  • Long-Term Semiconductor Program: The Indian government’s vision extends to designing a comprehensive semiconductor program spanning over two decades, aiming to establish India as a global semiconductor hub.
  • Continued Focus on Innovation: With a substantial pool of design engineers and ongoing initiatives to attract foreign investment, India is poised to embark on a journey of semiconductor innovation and excellence.

In conclusion, India’s approval of significant investments in semiconductor plants underscores its commitment to emerge as a formidable player in the global chip market. As the country takes bold strides towards semiconductor self-reliance, the stage is set for India to chart its course in the semiconductor industry’s dynamic landscape.


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Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.