Semiconductor Revolution: Union Cabinet’s Approval Paves the Way for First Facility in Assam, Three More Units Nationwide

The Union Cabinet authorized the creation of three semiconductor units on Thursday under the heading “Development of Semiconductors and Display Manufacturing Ecosystems in India,” which was a significant decision. All three units will begin construction within the next 100 days, according to Union Minister for Communications, Electronics, and Information Technology Ashwini Vaishnaw, who briefed reporters following a union cabinet meeting.

“Today the Prime Minister has taken an important decision to set up semiconductor fab in the country. The first commercial semiconductor fab will be setup by Tata and Powerchip-Taiwan, whose plant will be in Dholera,” he said.
The union minister said that cumulative investment in all three units will be Rs 1.26 lakh crore.

“All three units will start construction within the next 100 days. 50,000 wafer per month will be manufactured. 300 crore chips will be manufactured annually through this facility. Northeast will get its first semiconductor Unit in Assam. 48 million chips per day will be manufactured from here. The breakdown is investment in FAB will be 91,000 crore. Investment in the Assam unit will be 27,000 crore. Investment in the Sanand unit will be Rs 7,600 crore,” he said.

According to Vaishnaw, these units will create roughly 60,000 indirect jobs in addition to 20,000 direct jobs in advanced technology. According to him, “these units will accelerate employment creation in downstream industries that consume semiconductors, such as automotive, electronics, telecom, and industrial manufacturing.” He said that India Semiconductor Mission has accomplished four significant victories in a very short period of time.

“With these units, the semiconductor ecosystem will get established in India. India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India with today’s announcement,” the minister said.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in December 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.

According to an official statement, the unit’s construction is moving forward quickly, and a thriving semiconductor ecosystem is developing close by. The three semiconductor units that have been approved are the 50,000 wfsm capacity Semiconductor Fab, the Assamese semiconductor ATMP unit, and the semiconductor ATMP unit for specialized chips. According to the press release, Tata Electronics Private Limited (“TEPL”) and Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, will collaborate to establish a semiconductor factory.