Prime Minister Narendra Modi on Wednesday laid the foundation stone for three semiconductor projects worth around Rs 1.25 trillion, including a facility of Rs 91 billion in Dholera, which will start chip production by 2026.
Two of the three facilities are located in Gujarat, while one is located in Assam. The three projects are the Semiconductor Manufacturing Facility in Dholera Special Investment Area (DSIR) in Gujarat, the Outsourced Semiconductor Assembly and Test Facility (OSAT) in Morigaon, Assam and an OSAT facility in Sanand, Gujarat.
In short:
- India is investing over Rs. 1.25 lakh crore to set up three chip manufacturing units in India.
- Tata’s TEPL has partnered with Taiwan’s PSMC to set up a fabrication facility in Gujarat. It plans to start manufacturing 28nm chips by the end of 2026.
- One more chip facility is being set up in Gujarat and another plant is being set up in Assam.
Setting the foundation of three new semiconductor projects through video conferencing, the Prime Minister said, “The projects announced today will help India become a global semiconductor hub. These three semiconductor facilities will promote economic development and promote innovation in the country.”
“The 21st century operates electronically and cannot be imagined without semiconductor chips. During the first three industrial revolutions, India was lagging behind for various reasons, but the country is confidently moving to reach milestones in Industry 4.0, ”he said.
Central Rail, Communications, Electronics and IT Minister Ashwini Vaishnav said that the Dholera plant should start production by the end of 2026. India’s first semiconductor manufacturing facility will be set up by Tata Electronics in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan at an estimated cost of Rs 91,000 crore.
This facility will be powered by renewable energy. Officials present at the program said that a dedicated water supply would be provided to the area through the Narmada River Canal.
The OSAT facility in Morigaon, Assam will be developed by Tata Electronics with an investment of Rs 27,000 crore.
Vaishnav said, “The plant will serve electric vehicles, automobiles, mobile phones and power devices.”
The Sandand Osat facility will be set up by CG Power and Industrial Solutions Limited under the revised scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP), with a total investment of Rs 7,500 crore. All three projects are being encouraged by the Semiconductor Mission of India, whose outlay is Rs 76,000 crore.
The inauguration ceremony was attended by more than 1,000 people including Central Minister of Gujarat Bupendra Patel, Union Minister Vaishnav, Chief Minister of Assam Himant Biswa Sharma, Tata Sons Chairman Ann Chandrasekaran, Central and State Government officials and industry leaders.
More than 1 lakh college students in Gujarat attended the event virtual with people from various institutions across the country.
