Cabinet approves three semiconductor proposals in Gujarat, Assam

One of the facilities is a fabrication unit — as opposed to a packaging or assembly unit — and will make 50,000 ‘wafer starts’ a day.

February 29, 2024 05:31 pm | Updated 08:21 pm IST - New Delhi

Semiconductor chips. Image used for representative purpose only.

Semiconductor chips. Image used for representative purpose only. | Photo Credit: REUTERS

The Union Cabinet on February 29 approved three semiconductor proposals amounting to ₹1,25,600 crore in value in Dholera and Sanand in Gujarat, and in Morigaon in Assam. The Dholera and Morigaon facilities will be built by Tata Electronics Pvt. Ltd. and Tata Semiconductor Assembly and Test Pvt. Ltd. The former will be a full-fledged fabrication unit producing 50,000 ‘wafer starts,’ the initial form of silicon chips, per month.

Powerchip Semiconductor Manufacturing Corporation of Taiwan will be the technology partner for the fab unit, while the assembly and testing unit in Morigaon’s technology partners have been kept confidential at their request, Minister of Electronics and Information Technology Ashwini Vaishnaw told reporters.

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The Dholera units will be used to make “high performance compute chips with 28 nanometre technology,” and also to make chips for power management, which Mr. Vaishnaw said accounted for a large part of semiconductor demand. Both facilities’ output will cater to domestic demand as well as export their produced chips, Mr. Vaishnaw said.

Construction will start within 100 days, he added, hoping that the work is done well before the standard 5 year timeline for such facilities. The chip assembly facility by Micron, announced last year, is on track to have its first chip produced by December 2024, Mr. Vaishnaw said. The facilities announced on Thursday will create 20,000 direct jobs and 60,000 indirect jobs, the IT Ministry estimated in a note.

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The facility in Sanand will also be a packaging unit, set up by CG Power with technology from the Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand.

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