India has recently approved the construction of three semiconductor plants with investments totaling over $15 billion. This move is part of the country’s strategic plan to establish itself as a significant player in the global semiconductor industry. The government aims to leverage India’s existing strengths in chip design and develop capabilities in chip fabrication, as well as advanced packaging technologies.
Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corp to build one of the fabrication plants in Dholera, Gujarat, with an investment of approximately $11 billion. This facility will focus on 28-nanometer technology and cater to industries such as automobiles, consumer electronics, and defense. Additionally, Tata Semiconductor Assembly and Test Pvt Ltd will establish the second plant in Morigaon, Assam, with an investment of $3.26 billion to focus on developing indigenous advanced semiconductor packaging technologies. Another plant will be set up in Sanand, Gujarat, through a partnership between CG Power, Japan’s Renesas Electronics Corporation, and Thailand’s Stars Microelectronics, with an investment of nearly $1 billion.
The construction of these semiconductor plants is expected to create 20,000 advanced technology jobs directly and about 60,000 indirect jobs. This will not only contribute significantly to India’s economy but also strengthen the semiconductor ecosystem in the country. By attracting global chip manufacturers to set up operations in India, the country is positioning itself as an attractive destination for semiconductor manufacturing.
Amid geopolitical uncertainties, global chip manufacturers have been looking to diversify their operations to mitigate risks. Countries like India stand to benefit from this shift, as evidenced by the recent investments and partnerships in the semiconductor industry. Taiwan Semiconductor Manufacturing Company, for example, has been expanding its operations to countries like Japan, signaling a broader trend in the chip-manufacturing industry.
India’s move to approve the construction of three semiconductor plants marks a significant step towards establishing itself as a key player in the global semiconductor industry. By leveraging partnerships with international companies and focusing on advanced technologies, India is poised to make a mark in the semiconductor market. The creation of job opportunities and the development of a robust semiconductor ecosystem will further contribute to India’s technological growth and economic development.