The Union Cabinet has approved the setting up of chip manufacturing plants by Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in Gujarat’s Dholera district with a total investment of Rs 1.26 lakh crore. The Union Cabinet has given this approval with the aim of promoting the country’s goal of becoming a global semiconductor hub.
The plant is proposed to be developed as a pure-play foundry, producing semiconductor wafers for multiple industries including high-performance computing, display drivers and microcontrollers (MCUs). Land has already been identified to set up chip manufacturing plants. Construction work is likely to start in about three months.
According to Union IT Minister Ashwini Vaishnav, the Tata JV will build India’s first semiconductor fab with a capacity of 50,000 wafers.
The Union Cabinet has also approved the assembly and testing unit of Tata Semiconductor Test in Assam, on which an investment of about Rs 27,000 crore is being made.
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Union Minister of State for Electronics and IT Rajiv Chandrashekhar had announced earlier this month that the first semiconductor packaging plant in Assam will soon be built in a joint partnership between the state government and the Tata Group.
Union Minister of State for Electronics and IT Rajiv Chandrashekhar said that India has received investment proposals worth more than Rs 2.5 lakh crore for the semiconductor sector ranging from packaging, design and research and development.
US-based Micron Technology started construction of the Rs 22,500 crore facility in Sanand, Gujarat in September last year, setting a benchmark for India’s semiconductor journey.