Union Cabinet Nod Boosts India's Semiconductor Ambitions with Tata and Powerchip Investments

By siliconindia  |  Thursday, 29 February 2024, 04:05:17 PM IST

Union Cabinet Nod Boosts India's Semiconductor Ambitions with Tata and Powerchip Investments
In a significant stride towards establishing India as a global semiconductor hub, the Union Cabinet has granted approval for chip fabrication plants by Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera district, Gujarat. Union IT Minister Ashwini Vaishnaw revealed that Tata's joint venture would pioneer India's first semiconductor fab, boasting a monthly capacity of 50,000 wafers.
The Cabinet's nod also extended to Tata Semiconductor Assembly Test's assembly and testing unit in Assam, entailing an investment of approximately Rs 27,000 crore. This aligns with the government's vision to bolster the semiconductor ecosystem across the nation.
Earlier this month, Union Minister of State for Electronics and IT, Rajeev Chandrasekhar, had announced a groundbreaking development in Assam – the impending establishment of the state's inaugural semiconductor packaging plant, a collaborative effort between the state government and the Tata Group.
India's semiconductor sector has witnessed a surge in investment proposals exceeding Rs 2.5 lakh crore, encompassing various facets such as packaging, design, and research and development, as highlighted by Chandrasekhar. This robust interest underscores India's evolving role from being a talent provider to a destination attracting substantial investments in semiconductor activities.
Notably, in September of the preceding year, US-based Micron Technology commenced the construction of a Rs 22,500 crore facility in Sanand, Gujarat, setting a pivotal milestone in India's semiconductor journey. These strategic ventures and investments signify a concerted effort to fortify India's standing in the global semiconductor landscape.

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