India will become the world’s semiconductor hub, 6 manufacturing plants will be set up in these states with an investment of Rs 2.36 lakh crore.
The effort of the Central Government is to make India the semiconductor hub of the world. Considering the increasing role of semiconductor in the future, global and domestic companies are investing in this sector on a large scale. So far, 6 semiconductor plants have been approved in the country by the Central and State Governments. About Rs 2.36 lakh crore is being invested by different companies in these six semiconductor manufacturing plants. Under the India Semiconductor Mission (ISM), the Central Government is providing 50 percent capital assistance to companies for setting up semiconductor plants. Experts say that the formation of semiconductor hub will provide jobs to lakhs of youth.
Micron OSAT Plant
American chip manufacturing company Micron is building an Outsourcing Assembly and Testing Unit (OSAT) plant in Sanand district of Gujarat with an investment of about Rs 23,000 crore. This is the first semiconductor plant to be established in India. Assembly and testing of DRAM and NAND products will be done in this plant. The chips made in it will be supplied to domestic as well as global markets. This plant can start by the middle of next year. For this, the Central Government is providing 50 percent financial assistance and the Gujarat Government is providing 20 percent financial assistance.
Tata-PSMC Semiconductor Plant
India’s Tata Group, in collaboration with Taiwanese company Powerchip Semiconductor Manufacturing Corporation (PSMC), is building a semiconductor fabrication facility (Fab) in Dholera, Gujarat. It was inaugurated by Prime Minister Narendra Modi in March 2024. An investment of Rs 91,000 crore will be made in this plant. The central government will contribute 50 percent of the capital expenditure. The production capacity of this plant will be 50,000 wafers per month. Semiconductor production from the Dhorela plant may start by December 2026.
Tata Electronics Semiconductor Plant
A greenfield semiconductor assembly and testing facility is being set up by Tata Electronics at Jagiroad in Morigaon, Assam. This is the first semiconductor plant to be set up in the North East. About Rs 27,000 crore will be invested in this plant.
CG Power Sanand OSAT Plant
A state-of-the-art OSAT plant is being built in Sanand, Gujarat by Indian company CG Power in collaboration with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand. About Rs 7,600 crore will be invested in this plant in the next five years. Consumer electronics, industrial equipment and semiconductors used in 5G technology will be manufactured in this plant. About 1.5 crore chips will be made daily in this plant.
Kaynes Semicon Plant
Keynes Semicon is setting up an OSAT plant in Sanand, Gujarat with an investment of Rs 3,307 crore. About 63 lakh chips will be made daily in this plant. This plant was approved by the cabinet in the beginning of September.
Adani Group and Tower Semiconductor Plant
The semiconductor manufacturing project being established by India’s Adani Group and Israel’s company Tower Semiconductor in Panvel, Raigarh district of Maharashtra has recently received permission from the Maharashtra government. A total investment of Rs 83,947 crore will be made in this project under two phases. Upon completion of the first phase of the project, it will have a production capacity of 40,000 wafers per month. At the same time, after the completion of the second phase, its capacity will be 80,000 wafers per month.
