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PM Modi lays foundation for 3 semiconductor plants; 2 in Gujarat, 1 in Assam

New Delhi: In yet another milestone in India's endeavour to ramp up its semiconductor ecosystem, Prime Minister Narendra Modi on Wednesday laid the foundation stones for three new chip plants - two in Gujarat and one in Assam. Tata Group is setting up two of these three plants.

PM Modi participated in the event 'India's Techade: Chips for Viksit Bharat' virtually for the three semiconductor facilities with financial implications of about Rs 1.25 lakh crore.

Last month, the Union Cabinet chaired by Prime Minister Narendra Modi approved the establishment of three more semiconductor units under ' the Development of Semiconductors and Display Manufacturing Ecosystems in India. All three units - two in Gujarat and one in Assam -- will start construction within the next 100 days.

The semiconductor industry in India is still in a nascent stage, with various local and multinational companies intending to tap its vast potential.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on December 21, 2021, with a total outlay of Rs. 76,000 crore.

The approved three semiconductor units for which foundation stones are laid today are:

Tata Electronics Private Limited ("TEPL") will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat. Investment in this fab will be Rs 91,000 crore. PSMC has 6 semiconductor foundries in Taiwan. The capacity of the Dholera unit will be 50,000 wafer starts per month (WSPM).

CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat. This unit will be set up with an investment of Rs 7,600 crore. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.

Tata Semiconductor Assembly and Test Pvt Ltd ("TSAT") will set up a semiconductor unit in Morigaon, Assam. With a capacity of producing 48 million chips per day, this facility is being built at a cost of Rs 27,000 crore. Segments that will be covered are automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs.

These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries.

Meanwhile, American chip maker Micron's high-end semiconductor fabrication plant at Gujarat's Sanand, which is India's first, is coming into reality at a rapid pace. It is expected to be operational in late 2024.

Micron Technology is investing USD 2.5 billion (INR 22,500 crore) to establish an ATMP (assembly, test, marking, and packaging) facility in Gujarat's Sanand GIDC-II. Sanand GIDC is a highly industrialized zone in Gujarat, home to many national and multinational manufacturing industries. 

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