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India Approves 3 Semiconductor Units With Rs 1.26 Lakh Crore Investment

Explore the significant decision by the Indian Cabinet to approve three semiconductor units, marking a pivotal moment in India's journey towards technological self-sufficiency and economic growth.
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Introduction

During a press briefing, Union Minister for Communications and IT, Ashwini Vaishnaw, announced that the Union Cabinet gave a green signal to Tata Electronics’ plan to establish India’s inaugural pure-play foundry for 3 semiconductor units chip fabrication.The project, worth Rs 91,000 crore, will situate in Gujarat’s Dholera district in collaboration with Taiwanese Powerchip Semiconductor Manufacturing Corp (PSMC).

Let’s delve into the key details of this momentous 3 Semiconductor Units development.

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TATA – PSMC Semiconductor Fab in Gujrat

Tata Electronics Private Limited (“TEPL”) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan.

Investment: This fab will be constructed in Dholera, Gujarat. Investment in this fab will be Rs.91,000 crore.

Technology partner: PSMC is renowned for its expertise in logic and memory foundry segments. PSMC has 6 semiconductor foundries in Taiwan.

Capacity: 50,000 wafer starts per month (WSPM)  

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Segments covered:

High performance computer 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.

Read More: What are the challenges faced by Modern CMOS scaling? – techovedas

TATA only Semiconductor ATMP Unit in Assam

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is gearing up to establish a semiconductor unit in Morigaon, Assam, with an investment outlay of Rs.27,000 crore.

This facility will specialize in semiconductor packaging technologies, including flip chip and integrated system in package (ISIP) technologies. Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam.

Investment: investment of Rs.27,000 crore.

Technology: TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.
Capacity: 48 million Dies per day

Segments covered: Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

Read More: Tata to Establish 25000 Crore Semiconductor OSAT Plant in Assam: Minister – techovedas

Renesas – CG Power ATMP unit for specialized chips

Crompton Greaves Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat.

Investment: This unit will be set up with an investment of Rs.7,600 crore.

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.

Segments covered: The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.

Capacity: 15 million chips per day

Read More:Tata to Announce Semiconductor Fab investment in Gujarat; Start in 2024 – techovedas

What is an ATMP plant?

An ATMP (Assembly, Testing, Marking, and Packaging) semiconductor plant assembles, tests, marks with identification codes, and packages semiconductor chips into final products for electronic devices.

These plants typically handle the post-fabrication stages of semiconductor manufacturing. Micron, a US-based memory chip maker, is establishing a chip assembly plant worth Rs 22,516 crore, and it is adding more plants to its setup.

Read More: TSMC set to start constructing German fab in 2H24 : 5 Major Highlights – techovedas

Government support

Under the Indian Semiconductor Mission (ISM), the central government will provide a 50 per cent subsidy for the project. Additionally, the Gujarat State government has proposed to offer an additional 15-25 per cent subsidy over and above the subsidies provided by the central government.

Strategic importance of these units

Within a very short time, India Semiconductor Mission has achieved four big successes. These units will establish the semiconductor ecosystem in India.

India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication.

Today’s announcement includes the indigenous development of advanced packaging technologies in India.

Read More: Which Country has Highest No. of Semiconductor Fabs

Employment Potential

These units are expected to substantially boost employment, creating around 20,000 direct advanced technology jobs and approximately 60,000 indirect jobs.

This will not only benefit the semiconductor industry but also catalyse employment growth in downstream sectors such as automotive, electronics manufacturing, telecom manufacturing, and industrial manufacturing.

Conclusion

The approval of these 3 semiconductor units signifies a crucial step towards bolstering India’s semiconductor industry’s self-reliance and competitiveness on the global stage.

By fostering innovation, creating jobs, and enhancing technological capabilities, India is paving the way to become a semiconductor manufacturing powerhouse.

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