Mint Hyderabad

‘Chip plants to make India a hub, foster innovation’

- Gulveen Aulakh gulveen.aulakh@livemint.com NEW DELHI

Prime Minister Narendra Modi laid the foundation stone for three semiconduc­tor projects worth about ₹1.25 trillion on Wednesday, saying chip manufactur­ing will take India towards self-reliance and modernity.

“India is set to become a prominent semiconduc­tor manufactur­ing hub. The three facilities will drive economic growth and foster innovation,” he said in a virtual address during the foundation ceremony.

Among the three projects is India’s first commercial semiconduc­tor fabricatio­n unit to be set up by Tata Electronic­s Pvt. Ltd (TEPL) and Taiwan’s Powerchip Semiconduc­tor Manufactur­ing Corp. (PSMC), which the PM said will play a key role in making India a semiconduc­tor hub.

Foundation stones were laid for the ₹91,000-crore semiconfab­rication facility by TEPL-PSMC at the Dholera Special Investment Region (DSIR), Gujarat; a ₹27,000crore outsourced semiconduc­tor assembly and test (OSAT) facility at Morigaon, Assam also by TEPL; and a ₹7,600-crore OSAT facility at Sanand, Gujarat, by CG Power and Industrial Solutions, in a joint venture with Renesas Electronic­s Corporatio­n of Japan and Stars Microelect­ronics of Thailand.

The Centre and state govtion ernments will together provide a subsidy of nearly 70% of the cost of setting up these plants.

“We’re not just making investment­s; we’re also spending heavily to promote research and innovation in the semiconduc­tor sector. Today is a historic day. These projects in Gujarat and Assam will make the country a manufactur­ing hub for the world,” Modi said.

The three facilities will be in addition to American chipmaker Micron Technology’s high-end semiconduc­tor packaging and testing unit at Sanand, with an investment of $2.5 billion. India’s first such unit is expected to be operationa­l by late 2024, having started building up in September last year. The total investment from the four projects stands at about ₹1.5 trillion.

“In December 2026, the first chip from the Dholera plant will be produced. In December 2024, the first chip will be pro

duced from the Sanand plant,” said Ashwini Vaishnaw, minister for IT, telecom and railways, on the sidelines of the event.

India’s semiconduc­tor fab capacity will touch 180,000 wafers a month, taking into account existing proposals including a $11.5-billion semiconduc­tor fab plant by Tower Semiconduc­tor and the approved projects of TEPLPSMC and CG Power-Renesas, Rajeev Chandrasek­har, minister of state for electronic­s and informatio­n technology, told mediaperso­ns. Chandrasek­har added that the Tata OSAT facility in Assam will produce chips for major companies such as IBM and Tesla. “They have developed their own proprietar­y packaging technologi­es and manufactur­ing lines, they expect to have IBM and Tesla as their customers, as CM of Assam said, which I think is a huge additional milestone,” he said.

N. Chandrasek­aran, chairman, Tata Sons said that commercial production of chips from India’s first semiconduc­tor fabricatio­n unit will start by 2026, and it will produce chips from 28 nm and upwards. The Tata honcho said the first indigenous assembly unit in Assam may go live by late 2025 or early 2026, which will serve a variety of sectors from automotive to power to electronic­s, consumer and medical.

“Semicon is the foundation­al industry for everything digital. We will create more than 50,000 jobs and this is just the beginning,” Chandrasek­aran said on the sidelines of the foundation laying ceremony in Dholera on Wednesday. In Assam, the group is targeting to create 25,000 additional jobs.

The semicon plants will be very important for India, in the light of chip shortages during the pandemic, which led to the realisatio­n of India’s dependency on internatio­nal supply chains, the top executive said, adding that domestic semiconduc­tor industry was integral to indigenous industry, whereas semicon chips had a defining role to play in every industry, be it auto, AI, defence, green tech, health, and others.

Modi said that after missing out on the first three industrial revolution­s due to various reasons, India is now moving with an intention to lead Industry 4.0, the fourth industrial revolution and, therefore, stressed on the need for speedy execution that the government was undertakin­g. He underlined the pace of execution by sharing that the announceme­nt of the semiconduc­tor mission was made two years ago, followed by MoUs signed in the past few months and now the foundation stones for three projects are being laid. “India commits, India delivers, and democracy delivers,” said PM Modi.

 ?? PTI ?? Chip manufactur­ing will take India towards self-reliance and modernity, said PM Modi.
PTI Chip manufactur­ing will take India towards self-reliance and modernity, said PM Modi.
 ?? MINT ?? In Dec 2026, first chip from Dholera plant will be produced.
MINT In Dec 2026, first chip from Dholera plant will be produced.

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