India to begin domestic chip production with $15.2 billion investments  


Construction on the new semiconductor plants will begin in the next 100 days 

India has approved the construction of three semiconductor plants worth 1.26 trillion rupees ($15.2 billion), as the country aims to become an electronics global leader and decrease its reliance on chips from abroad. 

The announcement of the project ties into the “Make in India” initiative, which was launched in 2014 to transform India into a global hub for design and manufacturing. 

The first of the plants will be built in Dholera, Gujarat, by a partnership between Tata Electronics and Powerchip Semiconductor Manufacturing Corporation, with the companies jointly investing almost $11 billion. The new plant will focus on mature 28nm technology, which is widely used in industries such as automobiles, consumer electronics, and defence. 

The second plant will be set up in Morigaon, Assam, with an investment of $3.26 billion by Tata Semiconductor Assembly and Test Pvt Ltd. This site, by contrast, will focus on “indigenous advanced semiconductor packaging technologies including flip chip and integrated system in package technologies” in the automotive, electric vehicles, and electronics industries. 

India’s third plant will be built in Sanand, Gujarat via a nearly $1 billion investment from a partnership between CG Power, Japan’s Renesas Electronics Corporation, and Thailand’s Stars Microelectronics. This plant will also produce chips for consumer, automotive, and power applications. 

“This is a big decision for the country and a key accomplishment towards making India a self-dependent country,” Indian Electronics Minister Ashwini Vaishnaw told Reuters. 

“India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India,” read a government statement. 

India, who does not yet have a chip making plant, estimates that its semiconductor industry will be worth $63 billion by 2026, rivalling that of market leader Taiwan.  

It is estimated that the three plants will create a total of 80,000 jobs–20,000 in advanced technology and 60,000 indirect positions. 

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