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Cabinet approves 3 more semiconductor units; big push to Chip manufacturing

Cabinet approves 3 more semiconductor units; big push to Chip manufacturing

New Delhi, Feb 29 (UNI) In a major decision, the Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India, a move that will help India overcome the deficiency of chips used in various electrical manufacturing.

Within a very short time, India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will get established in India which already has deep capabilities in chip design.

With these units, India will develop capabilities in chip fabrication, an official release said adding advanced packaging technologies will be indigenously developed in India with today’s announcement.

All three units will start construction within next 100 days, it said adding the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on 21.12.2021 with a total outlay of Rs. 76,000 crore.

In June, 2023, the Union Cabinet had 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 approved three semiconductor units are - Semiconductor Fab with 50,000 wafers start per month (WSPM) 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.

This project will cover High performance compute chips with 28 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.

The second semiconductor ATMP unit will be established in Assam. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam entaining an investment of Rs 27,000 crore.

TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies. This has a capacity of 48 million a day.

This unit will cater to the needs of Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

The third units is for specialised chips. CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat.

This unit will be set up with an investment of Rs.7,600 crore, the release said, adding that its Technology partner Renesas is a leading semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analog, power, and System on Chip (‘SoC)’ products.

The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications with a capacity of 15 million chip per day.

Today’s decision will have major impact on the employment generation in the country as it expected to generate direct employment of 20,000 advanced technology jobs and about 60,000 indirect jobs.

These units will also accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor consuming industries.
UNI SKB CS1630

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