Prime Minister Narendra Modi expressed optimism about India’s technological self-reliance as the Union Cabinet approved proposals for establishing three semiconductor plants, including a mega fab by Tata Group, at a cumulative investment of INR 1.26 Lakh Crore. The move aligns with the country’s commitment to becoming a global hub in semiconductor manufacturing.
“With the Cabinet approval of 3 semiconductor units under the India Semiconductor Mission, we are further strengthening our transformative journey towards technological self-reliance. This will also ensure India emerges as a global hub in semiconductor manufacturing,” stated Prime Minister Modi.
The significant decision, approved on Thursday (February 29), includes the establishment of the country’s first semiconductor fab by Tata Group in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). The semiconductor fabrication plant, operated by Tata Electronics Pvt Ltd (TEPL), will be located in Gujarat’s Dholera and boast a production capacity of 50,000 wafers per month, with a net investment of INR 91,000 Crore.
Additionally, the Cabinet approved two other semiconductor proposals. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a chip assembly and testing unit in Assam with an investment of INR 27,000 Crore. Meanwhile, CG Power and Japan’s Renesas will set up a semiconductor plant in Gujarat’s Sanand, producing 15 million chips per day at an estimated cost of INR 7,600 Crore.
Last month, Minister of State Rajeev Chandrasekhar announced that the government received four proposals for semiconductor manufacturing plants and 13 for chip assembly units. These efforts are supplemented by a chip assembly plant with an investment of INR 22,516 Crore by the US-based memory chip maker Micron.
In a parallel development, Samsung unveiled its new semiconductor research and development (R&D) facility in Bengaluru under Samsung Semiconductor India Research (SSIR). The 1.6 Lakh square feet facility across four floors is designed to accommodate approximately 1,600 employees and will focus on cutting-edge semiconductor research and development.
These strategic initiatives are in line with the Ministry of Electronics and Information Technology’s (MeitY) commitment to supporting the development of AI-operated chips under the semiconductor mission. The government aims to create a unified platform for datasets and foster public-private partnerships to enhance computing capacity for startups and researchers.
