The significant investment of Rs. 126 lakh crore, including Rs. 91,000 crore from Tata-PSMC, Rs. 27,000 crore from TSAT Semiconductor, and Rs. 7,600 crore from CG Power and Renesas Electronics, is set to propel India's journey towards becoming a prominent global semiconductor hub
Prime Minister Narendra Modi on Wednesday, marked a significant milestone in India’s technological landscape by virtually laying the foundation stone for three semiconductor plants. “India fulfils its commitment, India delivers democracy, democracy delivers,” PM Modi stated while laying the foundation stone.
These plants, two of which are established by Tata Electronics and the third by CG Power, represent a combined investment exceeding Rs 1.26 lakh crore. The cabinet’s approval in February this year paved the way for these substantial investments, highlighting the government’s commitment to fostering innovation and technological advancement in the country.
The Tata-PSMC chip foundry, located in Dholera, Gujarat, boasts an investment of Rs 91,000 crore and is set to become the country’s premier high-tech chip manufacturing plant. Collaborating with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), Tata Group aims to commence chip production by the end of 2026, with an anticipated capacity of 50,000 wafer starts per month (WSPM). This facility will focus on manufacturing chips crucial for various sectors such as telecom, automotive, defense, consumer electronics, computing, data storage, and AI.
Additionally, Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will establish a semiconductor unit in Morigaon, Assam, with a substantial investment of Rs 27,000 crore. This cutting-edge facility will have a production capacity of 48 million units per day and will play a pivotal role in advancing indigenous advanced semiconductor packaging technologies. It is poised to serve a wide range of industries including automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
CG Power, in collaboration with Renesas Electronics Corporation of Japan and Stars Microelectronics from Thailand, will set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 7,600 crore. This unit aims to manufacture chips for consumer, industrial, automotive, and power applications, with a capacity of 15 million per day.
Job potential:
Apart from the technological advancements, these semiconductor units also hold immense promise in terms of job creation. According to a release by the Press Information Bureau (PIB), these units are expected to generate around 20 thousand direct jobs in advanced technology sectors and approximately 60 thousand indirect jobs. This employment boost is set to positively impact downstream industries such as automotive manufacturing, electronics manufacturing, telecom manufacturing, and other semiconductor-consuming sectors.
The establishment of these semiconductor plants marks a significant stride towards achieving self-reliance in chip manufacturing, highlighting India’s ascent as a pivotal player in the global semiconductor industry. This development not only symbolizes technological advancement but also underscores the nation’s potential for achieving excellence in technology and fostering economic prosperity on a global scale.
Prime Minister Narendra Modi, while addressing a gathering at Dholera, via video conferencing, after laying the foundation stone of three semiconductor facilities, said, “Today marks a historic occasion as we embark on a journey to create history and take a significant stride towards a brighter future. The foundation stones for three major projects, collectively worth approximately Rs 1.25 lakh crore, dedicated to semiconductor manufacturing, have been laid. These semiconductor facilities, located in Dholera and Sanand in Gujarat, and Morigaon in Assam, will contribute to positioning Bharat as a major global hub for semiconductor manufacturing.”
India is poised to become a world leader in semiconductors. pic.twitter.com/z3IH8asyV2
— Narendra Modi (@narendramodi) March 13, 2024
The PM spoke passionately about the transformative potential of the semiconductor industry for the nation’s youth. He emphasized that this industry, spanning crucial sectors like communication and transportation, holds immense promise in generating substantial revenue and employment opportunities on a global scale, amounting to billions of dollars. The Prime Minister underlined that chip manufacturing is not merely an industry but a development pathway, filled with endless possibilities. He highlighted the significant role this sector can play in creating new job avenues within Bharat while simultaneously driving forward technological progress.
During the virtual event, Union Minister Rajeev Chandrasekhar mentioned that India has huge potential in technology but needed a strong ecosystem. He said, “For decades, India was deprived of a thriving tech ecosystem despite having immense potential. Indian talent has made its mark on every major semiconductor company globally, and it is finally time to build an ecosystem that will encourage, skill, and train young Indians, especially in next-generation chip design, semiconductor research, and manufacturing, among other areas. The three new semiconductor plants inaugurated by our Hon’ble Prime Minister Modi ji will bring tremendous opportunities not just for Assam and Gujarat but for the whole nation. Made in India chips manufactured in India will help create a strong and significant presence for India in global value chains — it will make India a semicon hub for the world.”
(With inputs from PIB)
