With aspirations mirroring those of the U.S., Taiwan, and South Korea, India aims to emerge as a significant chip hub, actively attracting foreign companies to establish operations within its borders. The Indian government highlighted the rapid success of the India Semiconductor Mission, citing four significant achievements. These units are poised to establish a robust semiconductor ecosystem within India, according to an official press statement. In June 2023, India granted approval to Micron for the establishment of a semiconductor facility in Sanand, Gujarat.
India has given the green light for the construction of three semiconductor plants, with investments exceeding $15 billion, in a bid to establish itself as a key player in the global chip market.
According to a government statement released on Thursday, India, which already boasts substantial capabilities in chip design, aims to expand its expertise into chip fabrication through these initiatives. The nation is pursuing ambitions to rival major chip-producing nations such as the U.S., Taiwan, and South Korea, actively encouraging foreign companies to establish operations within its borders.
One of these fabrication plants will be established in Dholera, Gujarat, through a partnership between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp, with an investment nearing $11 billion (Rs.91,000 crore). Powerchip Semiconductor Manufacturing Corp specializes in chip design and manufacturing services, operating six semiconductor foundries in Taiwan. The Dholera facility will focus on utilizing mature 28-nanometer technology, catering to industries such as automobiles, consumer electronics, and defense. Mature technology in this context refers to processes involved in producing 28-nanometer or larger chips, typically considered as legacy chips.
The second plant, to be set up by Tata Semiconductor Assembly and Test Pvt Ltd in Morigaon, Assam, will receive an investment of $3.26 billion (Rs.27,000 crore). This facility aims to develop indigenous advanced semiconductor packaging technologies, including flip chip and integrated system-in-package technologies, primarily targeting the automotive, electric vehicle (EV), and consumer electronics sectors.
