Tata Group's joint venture with Taiwan's Powerchip Semiconductor Manufacturing Corp. will set up India's first chip fabrication unit in Gujarat's Dholera.
The facility will come up with an investment of Rs 91,000 crore and the construction will begin within 100 days, Union Minister Ashwini Vaishnaw said after a cabinet meeting on Thursday. The plant will have a capacity of 50,000 wafers per month. Each wafer has bout 5,000 chips and the annual capacity will be 300 crore chips, he said.
The government also approved two more semiconductor units. Tata Semiconductor Assembly and Test Unit in Assam and CG Power-Renesas Electronics-Stars Microelectronics joint venture in Sanand, Gujarat.
The cumulative investments in three semiconductor units will be Rs 1,26,000 crore, Vaishnaw said.
The fresh approvals now take India's tally of semiconductor units to four, including Micron's semiconductor assembly and test facility in Gujarat, which was approved in June 2023.
"An outlay of Rs 59,000 crore has been given in total for the three units approved today and Micron's plant approved earlier," Vaishnaw said.
The government's PLI scheme for chips was notified with an outlay of Rs 76,000 crore in 2021.
While the construction horizon is roughly three–four years for a semiconductor unit, the government is working to compress it, Vaishnaw said.
The first chip from the Micron unit is set to be shipped by December 2024, the minister said.
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