Cabinet approves establishment of 3 new semiconductor fab units, creating 80,000 jobs
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment of three semiconductor fabrication (fab) units generating 20,000 direct jobs and nearly 60,000 indirect jobs. The units will be set up in Gujarat, Assam, and Sanand within the next 100 days, marking a significant development in India’s semiconductor manufacturing ecosystem.
The semiconductor fab in Dholera, Gujarat, with 50,000 wafers per month capacity will be set up by Tata Electronics Private Ltd (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. The Union IT Minister, Ashwini Vaishnaw, announced the investment of Rs 91,000 crore for the construction of this fab, focusing on high-performance compute chips and power management chips for various industries.
Furthermore, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a semiconductor assembly, testing, monitoring, and packing unit in Morigaon, Assam, with an investment of Rs 27,000 crore. The unit will focus on developing advanced semiconductor packaging technologies for sectors like automotive, electric vehicles, consumer electronics, and telecom, among others.
Additionally, the third semiconductor ATMP unit for specialized chips will be set up by CG Power in Sanand, Gujarat, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand. This unit will have a capacity of 15 million per day and an investment of Rs 7,600 crore, manufacturing chips for consumer, industrial, automotive, and power applications.
The establishment of these semiconductor fab units will not only lead to employment creation but also strengthen India’s semiconductor ecosystem. With a total outlay of Rs 76,000 crore, the ‘Programme for Development of Semiconductors and Display Manufacturing Ecosystem’ in India is a significant step towards developing capabilities in chip fabrication and advanced packaging technologies indigenously.
