India has given the green light for the construction of three semiconductor plants valued at 1.26 trillion rupees (USD 15.2 billion) in an effort to boost its electronics industry and reduce its dependence on imported chips. The decision to build these plants aligns with the ‘Make in India’ initiative, which was introduced in 2014 to position India as a global center for design and manufacturing.
The first plant will be located in Dholera, Gujarat, and will be a collaboration between Tata Electronics and Powerchip Semiconductor Manufacturing Corporation, with a combined investment of nearly USD 11 billion. This facility will focus on 28nm technology, commonly used in sectors like automotive, consumer electronics, and defense.
The second plant will be established in Morigaon, Assam, with an investment of USD 3.26 billion by Tata Semiconductor Assembly and Test Pvt Ltd. This plant will concentrate on advanced semiconductor packaging technologies for industries such as automotive, electric vehicles, and electronics. India's third plant will be constructed in Sanand, Gujarat, with an investment of almost USD 1 billion from a partnership involving CG Power, Renesas Electronics Corporation from Japan, and Stars Microelectronics from Thailand. This plant will manufacture chips for consumer electronics, automotive, and power applications.
Indian Electronics Minister, Shri Ashwini Vaishnaw, stated, "This is a significant step for the country and a major milestone in making India self-reliant."
The government also mentioned that India has strong capabilities in chip design and will now develop capabilities in chip fabrication and advanced packaging technologies domestically. India, which currently lacks a chip manufacturing plant, anticipates its semiconductor industry to reach USD 63 billion by 2026, competing with market leader, Taiwan. It is projected that the three plants will generate a total of 80,000 jobs, including 20,000 in advanced technology and 60,000 indirect positions.
