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India Chips In: Modi’s Cabinet Approves Trio of Tech Titans, Promises Semiconductor Leap

In a groundbreaking move set to boost the nation’s tech ambitions, Prime Minister Narendra Modi’s Cabinet has green-lit the construction of three colossal semiconductor units, marking a “giant leap” for the India Semiconductor Mission. The trio of tech titans is slated to break ground within the next 100 days, under the ambitious banner of ‘Development of Semiconductors and Display Manufacturing Ecosystems in India,’ a program with a whopping budget of Rs. 76,000 crore announced back on December 21, 2021.

The latest approval follows hot on the heels of the green light given to Micron in June 2023 for its semiconductor venture in Sanand, Gujarat, which is currently sprinting ahead in construction. This move is expected to catalyze a robust semiconductor ecosystem in its vicinity.

The three units poised to transform India’s semiconductor landscape include:

  1. Tata’s Tech Behemoth in Dholera: Tata Electronics Private Limited, in partnership with Powerchip Semiconductor Manufacturing Corp of Taiwan, is set to erect a semiconductor fabrication unit in Dholera, Gujarat. With an investment of Rs.91,000 crore, this facility will boast a capacity of 50,000 wafer starts per month, focusing on high-performance compute chips and power management chips for a variety of sectors including electric vehicles and telecom.
  2. Assam’s Assembly Ace: Tata Semiconductor Assembly and Test Pvt Ltd will establish a semiconductor assembly and test unit in Morigaon, Assam, with a budget of Rs.27,000 crore. This unit aims to pioneer indigenous advanced semiconductor packaging technologies, promising a production capability of 48 million units per day.
  3. Gujarat’s Specialized Chip Giant: In a collaboration between CG Power, Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, Sanand, Gujarat, will see the rise of a unit specializing in chips for consumer, industrial, automotive, and power applications. This venture will see an investment of Rs.7,600 crore.

These strategic moves are not just about bolstering India’s position in the global semiconductor market but are also poised to create a staggering 20,000 direct and 60,000 indirect job opportunities. By fostering capabilities in chip design, fabrication, and advanced packaging technologies, India is on the fast track to becoming a self-reliant semiconductor powerhouse, signaling a bright future for its automotive, electronics, telecom, and industrial sectors.

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