From Chips to Nation-Building: India’s $15.2 Billion Semiconductor Leap

The Indian government has taken a significant step towards becoming self-reliant in semiconductor production by approving the establishment of three semiconductor fabrication units. This approval, announced on February 29, involves an investment of Rs 1.26 lakh crore (approximately $15.2 billion). Let’s celebrate this technological leap! 🎉🇮🇳

Establishing semiconductor fabrication units within India can significantly boost the country’s economy.

Currently, India heavily relies on imported semiconductors for its electronics industry. By producing chips domestically, India can reduce its import bill and strengthen its trade balance. With local production, India can export semiconductors to other countries, contributing to foreign exchange earnings.

A robust semiconductor industry ensures a stable supply chain for various sectors like consumer electronics, automotive, and telecommunications. This resilience is crucial for economic growth. India’s move toward self-reliance in semiconductor manufacturing aligns with the broader vision of Atmanirbhar Bharat (self-reliant India). Additionally, reducing dependence on foreign suppliers enhances India’s strategic autonomy.

Self-reliance leads to job opportunities across the value chain, from research and development to manufacturing and distribution. The semiconductor industry is labor-intensive and requires skilled workers. Setting up fabrication units will create jobs in various domains:

Scientists, engineers, and researchers will work on cutting-edge technologies. A thriving semiconductor industry has a multiplier effect on related sectors like Electronics Manufacturing, Startups and Entrepreneurship.

Details of the approved establishments:

Semiconductor Fab with 50,000 wfsm (wafer starts per month) capacity in Gujarat:

• Location: Dholera, Gujarat.
• Investment: Rs. 91,000 crore.
• Technology Partner: Tata Electronics Private Limited (TEPL) in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan.
• Capacity: 50,000 wafer starts per month (WSPM).
• Segments Covered:
• High-performance compute chips with 28 nm technology.
• Power management chips for electric vehicles (EVs), telecom, defense, automotive, consumer electronics, display, and power electronics.
• Significance: This fab aims to bolster India’s semiconductor ecosystem and reduce import dependency 

Semiconductor ATMP (Assembly Testing, Marking and Packaging) unit for specialized chips in Gujarat:

• Location: Sanand, Gujarat.
• Investment: Rs. 7,600 crore.
• Technology Partner: CG Power, in partnership with Renesas Electronics Corporation (Japan) and Stars Microelectronics (Thailand).
• Segments Covered: Manufacturing chips for consumer, industrial, automotive, and power applications.
• Capacity: 15 million units per day.
• Strategic Importance: Strengthening India’s position in specialized chip production

Semiconductor ATMP (Assembly Testing, Marking and Packaging) unit in Assam:

• Location: Morigaon, Assam.
• Investment: Rs. 27,000 crore.
• Technology: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is developing indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies.
• Capacity: 48 million units per day.
• Segments Covered: Automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
• Objective: Enhance domestic semiconductor assembly and testing capabilities 

All the above establishments are expected to start construction in the next 100 days

Sources:

(1) Giant leap for India Semiconductor Mission: Cabinet approves three more .... https://www.pmindia.gov.in/en/news_updates/giant-leap-for-india-semiconductor-mission-cabinet-approves-three-more-semiconductor-units/.

(2) Government approves 3 semiconductor units in India, Tata Group to set .... https://timesofindia.indiatimes.com/gadgets-news/government-approves-3-semiconductor-units-in-india-tata-group-to-set-up-two/articleshow/108109506.cms.

(3) Cabinet Okays 3 Semiconductor Units, Construction To Start In 100 Days. https://www.ndtv.com/india-news/union-cabinet-okays-3-semiconductor-units-construction-to-start-in-100-days-5149993.

(4) Cabinet approves 3 semiconductor fab units, to generate 80,000 jobs. https://www.businessinsider.in/business/news/cabinet-approves-3-semiconductor-fab-units-to-generate-80000-jobs/articleshow/108108678.cms.