The Union Cabinet chaired by Prime Minister Narendra Modi, approved three semiconductor units on Thursday, under the 'Development of Semiconductors and Display Manufacturing Ecosystem in India.' A release from the center said that the construction will start in the next 100 days. To recall, the Indian govt announced the programme for the Development of Semiconductors and Display Manufacturing Ecosystem in India on December 21, 2021, with a total outlay of Rs 76,000 crore.
In June 2023, the Union Cabinet approved the proposal of Micron to set up a semiconductor unit in Sanand, Gujarat. The construction of the said unit is ongoing and progressing at a rapid pace, said the govt release.
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Under the recent approval, there will be three new semiconductor units, two of which will be made by the Tata Group.
The first one will be made by Tata Electronics Private Limited in partnership with Powerchip Semiconductor Manufacturing Corp from Taiwan. This semiconductor unit will involve a total investment of Rs 91,000 crore and will be constructed in Dholera, Gujarat. The capacity of this semiconductor unit will be 50,000 wafers per month to start with.
The second unit will also come from the Tata Group company called Tata Semiconductor Assembly and Test Pvt Lt. This semiconductor unit will be set up in Morigaon, Assam. The capacity of this unit will be 48 million per day and it will be set up with an outlay of Rs 27,000 crore.
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The third unit will come from CG Power in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand. This new unit will be set up in Sanand, Gujarat, with a total outlay of Rs 7,600 crore. The capacity for this unit will be 15 million per day.
The main aim to set up these units in India is to ensure that from the design capabilities, India can also move towards manfuacturing capabilities of semiconductors. The move will help in establishing the semiconductor manufacturing ecosystem in the country.
SP Kochhar, Directorage General, COAI, said, "The Union Cabinet’s approval on the establishment of three semiconductor units under the India Semiconductor Mission is a positive and commendable development. This is a progressive step for India and the strongly emerging manufacturing ecosystem in the country. We believe this serves as an excellent example for our nation towards attaining self-sufficiency in line with our Hon’ble Prime Minister’s vision of ‘Atmanirbharta’ and will further inspire India’s goals to become a global manufacturing and supply chain hub."
