In a bold move to strengthen its position in the global semiconductor market, India has approved a monumental investment of up to $15.2 billion towards the establishment of three new semiconductor plants. This initiative marks India’s ambitious bid to rival industry leaders like China and Taiwan, signaling a significant shift in the country’s technological landscape.
The centerpiece of this initiative is the country’s first semiconductor fab facility, a joint venture between Tata Group and Taiwan’s Power Chip, slated to be built in the Dholera region of Gujarat. With a projected capacity to produce 50,000 wafers per month and an annual output target of 3 billion chips, this facility underscores India’s commitment to diversifying its semiconductor portfolio across various market segments, including high-power computers, electric vehicles, telecom, and power electronics.
Of particular note is the strategic focus on general-purpose applications, despite the industry’s current emphasis on AI chips. This deliberate choice reflects India’s broader vision to establish a robust foundation in semiconductor manufacturing while catering to a broad range of industry needs.
Furthermore, the approval of a semiconductor assembly, testing, marking, and packaging unit in Assam, backed by Tata Semiconductor Assembly and Test, further underscores India’s concerted effort to expand its semiconductor capabilities across different regions of the country. With the capacity to produce 48 million chips per day and targeting key sectors such as automotive, consumer electronics, and telecom, this unit is poised to enhance India’s domestic and export potential significantly.
In a bid to foster international collaboration and leverage specialized expertise, India has also greenlit investments from Renesas Electronics of Japan and Stars Microelectronics of Thailand. Teaming up with CG Power, these partnerships aim to establish a specialized chip facility in Sanand, Gujarat, catering to niche sectors such as defense, space, electric vehicles, and high-speed trains. With a daily production capacity of 15 million chips, this facility represents a critical step towards enhancing India’s capabilities in cutting-edge semiconductor technologies.
The expedited timeline for construction underscores the government’s commitment to accelerating the development of these semiconductor facilities, with the Indian IT minister highlighting plans to commence construction within 100 days. This ambitious endeavor reflects India’s resolve to emerge as a formidable player in the global semiconductor landscape, driving innovation, fostering economic growth, and securing strategic autonomy in critical technological domains.
As India embarks on this transformative journey in semiconductor manufacturing, the implications extend far beyond economic gains. With a renewed emphasis on indigenous production and technological self-reliance, India’s semiconductor push heralds a new era of innovation, collaboration, and competitiveness in the global chip race.
