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India Takes a Big Step Towards Chip Self-Reliance with Three New Semiconductor Plants

In a major push towards self-reliance in chip production, the Indian government has approved the establishment of three new semiconductor plants across the country. This significant announcement, made on Thursday, marks a crucial step forward in India's ambitious semiconductor program, launched in December 2021 with an investment of Rs 76,000 crore.


The new plants include two projects spearheaded by Tata. The first, a joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC), will establish a fabrication unit (fab) in Dholera, Gujarat, with a staggering investment of Rs 91,000 crore. This fab is expected to produce a significant number of chips, with a projected output of 50,000 wafers per month and 300 crore chips annually.


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The second Tata-led project, undertaken by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), will be the first semiconductor unit in Northeast India. Located in Morigaon, Assam, the plant is expected to manufacture 48 million chips per day, further bolstering India's chip production capabilities.


The third plant, established through a collaboration between CG Power, Japan's Renesas Electronics Corporation, and Thailand's Stars Microelectronics, will be an assembly, testing, marking, and packaging (ATMP) unit situated in Sanand, Gujarat. This project, with an investment of Rs 7,600 crore, adds another crucial piece to India's burgeoning semiconductor ecosystem.


These new projects come on the heels of the previously approved Micron unit in Sanand, Gujarat. Together, these initiatives are expected to create a robust domestic semiconductor ecosystem, reducing India's dependence on foreign chip imports. This not only enhances supply chain security but also paves the way for potentially lower chip prices and increased domestic production.


Furthermore, these projects are expected to generate significant employment opportunities in the electronics and semiconductor sectors, attracting further investments from both domestic and international players. This, in turn, could foster innovation and technological advancement in the field.


With the government emphasizing the commencement of construction within the next 100 days, India's journey towards self-sufficiency in chip production takes a significant leap forward. These new plants represent a substantial investment in the future of the country's technological landscape.

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