Government Approves Three Semiconductor Plants; Tata to Establish First One in Dholera

Highlights
  • Tata and Taiwan’s PSMC will build India’s first semiconductor fabrication plant (Fab) in Dholera, Gujarat.
  • The Government also approved another two plants in the country.

India took a big step towards making its chips as MeitY has given the green light to three semiconductor plants. The first will be in Dholera, Gujarat, another in Sanand, Gujarat, and the third in Morigaon, Assam. Here’s everything you need to know about.

Tata-PSMC Collaboration to Establish India’s First Semiconductor Fab

A recent X post by the Ministry of Electronics and Information Technology (MeitY) has revealed that Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) are joining forces to establish India’s first semiconductor fabrication plant (Fab) in Dholera, Gujarat, with a hefty investment of Rs 91,000 crore.

Highlighting the typical 3-4 years production timeline for semiconductor fabs, MeitY’s Ashwani Vaishnaw expressed optimism about speeding up the process. He noted recent developments in assembly, testing, marking, and packaging (ATMP) technology, showcasing India’s commitment to technological advancements. MeitY is optimistic that,

“This will mark India’s emergence in the global semiconductor value chain, unlocking endless potential.”

Other Semiconductor Plants

Apart from Dholera, the Cabinet approved Tata Semiconductor Assembly and Test Pvt. Ltd’s chip assembly and testing unit in Assam, with an investment of Rs 27,000 crore. Further diversifying, CG Power and Japan’s Renesas will set up a semiconductor plant in Gujarat’s Sanand, investing Rs 7,600 crore, expected to produce 15 million chips per day.

These approvals align with the existing Rs 22,516-crore chip assembly plant by US-based Micron, solidifying India’s position in global semiconductor manufacturing.

A step towards a truly ‘Made in India’ Smartphone

Currently, most smartphones in India sport the “Made in India” tag. However, these devices aren’t genuinely made in India; they are mostly assembled in the country. Until now, the lack of an in-house semiconductor plant has been a big hurdle. But with the upcoming Fab, this is set to change, paving the way for genuinely Made in India devices. Although an entirely Made in India smartphone might take a while, as there are lots of other factors at play too. But the Government is actively working to strengthen the assembly sector, bringing us a step closer.

A recent report highlighted the efforts in a new production-linked incentive (PLI) scheme designed to attract key component players from China, South Korea, Taiwan, and the US, ultimately establishing a robust ecosystem for our electronics manufacturing industry.