New Delhi: The Union Cabinet today approved the establishment of three new semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’. All three units will start construction within the next 100 days.
According to a Cabinet note, these units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs. They will also accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries.
Explaining the strategic importance of these units, the Cabinet note stated that with these units, the semiconductor ecosystem will “get established” in India. It stated that while India already has deep capabilities in chip design, with these units, it will develop capabilities in chip fabrication. Moreover, advanced packaging technologies will be indigenously developed in India with today’s announcement.
The approved three semiconductor units are:
1. Semiconductor Fab with 50,000 wound-field synchronous motor (wfsm) capacity:
Tata Electronics Private Limited (“TEPL”) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. This fab will be constructed in Dholera, Gujarat. Investment in this fab will be Rs.91,000 crore. The technology partner, PSMC, is renowned for its expertise in logic and memory foundry segments. PSMC has 6 semiconductor foundries in Taiwan.
The capacity of the project would be 50,000 wafer starts per month (WSPM).
Segments covered:
- High-performance compute chips with 28 nanometre (nm) technology
- Power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc. Power management chips are high voltage, high current applications.
2. Semiconductor ATMP unit in Assam:
Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam, with an investment of Rs.27,000 crore.
- Technology: TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.
- Capacity: 48 million per day
- Segments covered: Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.
3. Semiconductor ATMP unit for specialized chips:
CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat.
- Investment: This unit will be set up with an investment of Rs.7,600 crore.
- Technology partner: Renesas is a leading semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analogue, power, and System-on-chip (‘SoC)’ products.
- Segments covered: The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.
- Capacity: 15 million per day
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on December 21, 2021, with a total outlay of Rs. 76,000 crore.
In June 2023, the Union Cabinet approved the proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit, the Cabinet note stated.
– global bihari bureau
