India approved three additional semiconductor manufacturing projects after Micron's ATMP facility, with two proposed by Tata, as India is on its way to building a hub for semiconductor manufacturing.
According to the Press Information Bureau of India, India's Cabinet approved three proposals under the INR760 billion Programme for Development of Semiconductors and Display Manufacturing Ecosystem, announced in late 2021. Projects will begin construction in 100 days.
Proposals and benefits
Three projects approved included a fab proposed by Tata Electronics in partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corp (PSMC), which proposed to set up a fab with 50,000 monthly capacity of 50,000 wafers. The fab will be at Dholera Gujarat with an investment of INR910 billion. The fab will make chips on multiple nodes, including 28nm nodes, for applications, including EVs, telecom, defense, automotive, consumer electronics, display, power electronics, etc.
Randhir Thakur, CEO of Tata Electronics, was quoted by Nikkei Asia saying that the partnership with PSMC provides access to a broad technology portfolio in leading-edge and mature nodes, including 28nm, 40nm, 55nm, 90nm, and 110nm and also collaboration for high-volume manufacturing.
Tata's partnership with PSMC came as multiple Taiwan-based companies committed to invest in India regarding semiconductors, including Foxconn's partnership with HCL and Aptops Technology's partnership with Kaynes Semicon.
The second proposal was an ATMP facility in Moriaon, Assam, proposed by Tata Semiconductor Assembly and Test, with an investment of INR270 billion. The facility will be engaged in 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 set up at Sanand, Gujarat, with an investment of INR76 billion and engaged in ATMP business for consumer, industrial, automotive, and power applications, with a daily output of 15 million chips.
Regarding employment potential, India believes these units are projected to generate direct employment for 20,000 individuals in advanced technology roles and approximately 60,000 indirect jobs. Furthermore, these units will expedite employment opportunities across downstream sectors such as automotive, electronics, telecom, industrial, and other industries reliant on semiconductor technology.
India's semiconductor ambition
According to the Times of India, Rajeev Chandrasekhar, India's minister for electronics and IT, said proposals of more than INR2.5 have been received from global semiconductor companies, and India is fast becoming a semiconductor nation when India was negligible in the space two years ago.
Tata's chip fab and ATMP facility investments are accompanied by Tata Group's foray into electronics manufacturing, including semiconductors, iPhone assembly, and EV and battery manufacturing, as well as an investment in Air India.
The Hindu Businessline quoted N Chandrasekaran, chairman of Tata Sons, saying that semiconductors will become the cornerstone of this transformation as every aspect of human life undergoes AI-driven digitization. He added that by 2030, the global semiconductor industry is projected to reach US$1 trillion, with Indian semiconductor demand anticipated to surpass $110 billion. Chandrasekaran believes that India's foray into semiconductor manufacturing will substantially mitigate risks in global supply chains and elevate India's standing as a crucial participant in the global semiconductor sector.
