India has recently approved three additional semiconductor manufacturing projects, following the approval of Micron's ATMP facility, as part of its efforts to become a hub for semiconductor manufacturing. According to the Press Information Bureau of India, the Indian Cabinet has given the green light to three proposals under the INR760 billion Programme for Development of Semiconductors and Display Manufacturing Ecosystem, which was announced in late 2021. These projects are set to commence construction within 100 days.
The three approved projects include a fab proposed by Tata Electronics in partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corp (PSMC). This fab, to be located in Dholera Gujarat with an investment of INR910 billion, will have a monthly production capacity of 50,000 wafers. It is anticipated to produce chips on multiple nodes, including 28nm nodes, for various applications such as electric vehicles, telecom, defense, automotive, consumer electronics, display, and power electronics. Randhir Thakur, CEO of Tata Electronics, highlighted the partnership's access to leading-edge and mature nodes technology, including 28nm, 40nm, 55nm, 90nm, and 110nm, as well as collaboration for high-volume manufacturing.
The second proposal involves an ATMP facility in Moriaon, Assam, proposed by Tata Semiconductor Assembly and Test, with an investment of INR270 billion. This facility will focus on indigenous chip packaging and testing, including flip chip and ISIP technologies, with a daily output of 48 million chips for automotive, consumer electronics, telecom, and mobile phones.
The third project, proposed by India-based CG Power in partnership with Japan-based Renesas Electronics and Thailand-based Star Microelectronics, will be established in Sanand, Gujarat, with an investment of INR76 billion. This project will engage in the ATMP business for consumer, industrial, automotive, and power applications, and it is expected to have a daily output of 15 million chips.
In terms of employment potential, these units are projected to generate direct employment for 20,000 individuals in advanced technology roles, as well as approximately 60,000 indirect jobs. Additionally, they are expected to create employment opportunities across downstream sectors such as automotive, electronics, telecom, industrial, and other industries reliant on semiconductor technology.
India's Minister for Electronics and Information Technology, Rajeev Chandrasekhar, revealed that proposals exceeding INR2.5 trillion have been received from global semiconductor companies. This marks a significant transformation for India, which was previously negligible in the semiconductor space just two years ago. Tata's investments in chip fab and ATMP facilities align with the Tata Group's ventures into electronics manufacturing, including semiconductors, iPhone assembly, EV and battery manufacturing, as well as an investment in Air India.
Chairman of Tata Sons, N Chandrasekaran, emphasized the significance of semiconductors in the ongoing digital transformation, foreseeing that by 2030, the global semiconductor industry will reach a value of US$1 trillion, with Indian semiconductor demand anticipated to surpass $110 billion. Chandrasekaran believes that India's venture into semiconductor manufacturing will significantly mitigate risks in global supply chains and elevate India's standing as a crucial participant in the global semiconductor sector.
