With the aim to foster growth, encourage investments, and accelerate home-grown capabilities, the Indian Government, for some time now, has been taking initiatives to promote the Semiconductor industry.
The recent foundation stone laying for three new semiconductor fabrication units (fab) at Dholera and Sanand in Gujarat and Jagiroad in Assam, respectively, is a testament to India’s resolve to become a global hub in semiconductor manufacturing.
The plants will be established through a combined investment of INR 1.25 lakh crore. The plants in Dholera and Jagiroad will be built by Tata Electronics Pvt Ltd (TEPL). The Dholera Fab unit will be developed in collaboration with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC). India’s first AI-enabled fab is expected to create over 20,000 jobs, with an investment of around INR 91,000 crore.
Along similar lines, Tata Semiconductor Assembly and Test (TSAT) is to build a semiconductor assembly and test facility in Jagiroad with an investment of around INR 27,000 crore. The commercial production from both plants will begin in 2026, catering to the requirements of a myriad industry sectors such as automotive, power, electronics, consumer, and medical. The new plant is said to generate more than 27,000 skilled jobs.
Additionally, Murugappa Group-owned CG Power has partnered with Japan-based Renesas Electronics and Thailand-based Stars Microelectronics to come up with a new semiconductor facility in Sanand, which is worth INR 7,600 crore.
To reduce dependence on imports and promote domestic production, the Indian Government incentivizes and lends full support to draw semiconductor companies to set up fabs in India.
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“Vision is not enough. It must be combined with venture. It is not enough to stare up the steps, we must step up the stairs.”
SOUMI MITRA
Editor-in-Chief
Modern Manufacturing India
soumi.mitra@magicwandmedia.in