Researchers at the Semiconductor Manufacturing Laboratory at the Center for Nanoscience and Engineering, Indian Institute of Science, Bangalore, June 30, 2018.
Manjunath Kiran | AFP | Getty Images
India has ambitions to become a major chip hub after the United States, Taiwan and South Korea, and is encouraging foreign companies to set up operations in the country.
Tata Electronics has partnered with Taiwan's Powerchip Semiconductor Manufacturing Corporation to invest about $11 billion (Rs. 91,000 crore) to open one of its manufacturing plants in Dholera, Gujarat, according to a statement. It is said that it is planned to be constructed.
PSMC provides chip design and manufacturing services in the logic and memory space. It has six semiconductor foundries in Taiwan.
The plant will focus on mature 28-nanometer technology in industries such as automotive, consumer electronics, and defense. Mature technology refers to processes involved in manufacturing chips that are 28 nanometers or larger (generally considered legacy chips).
Tata Semiconductor Assembly and Test Pvt Ltd has set up a second factory in Morigaon, Assam with an investment of $3.26 billion (Rs. 27,000 crore) to develop unique technologies including flip-chip and integrated system-in-package technologies. Develop “advanced semiconductor packaging technology”. Automobile, EV, and consumer electronics segments.
CG Power will partner with Japan's Renesas Electronics Corporation and Thailand's Stars Microelectronics to set up a third factory in Sanand, Gujarat, specializing in chips for consumer, industrial, automotive and power applications. Investment is expected to be close to $1 billion (Rs. 7.6 billion).
All three factories are scheduled to begin construction within the next 100 days.
In June 2023, India approved Micron to set up a semiconductor unit in Sanand, Gujarat.
“In a very short span of time, the Indian Semiconductor Mission has achieved four major successes. These units will establish a semiconductor ecosystem in India,” the government said.
These factories will directly create 20,000 high-tech jobs and approximately 60,000 indirect jobs.
Global semiconductor manufacturers are looking to diversify their operations amid geopolitical uncertainty, which will benefit countries like India.
Taiwan Semiconductor Manufacturing Company, the world's largest contract chip maker, recently opened a new factory in Japan as it looks to shore up its lagging chip manufacturing industry.
