INDIA’S NEW SEMICONDUCTOR PROJECTS

1. March 13, 2024, Prime Minister Narendra Modi laid the foundation stone of three semiconductor projects worth about Rs 1.25 lakh crore through virtual medium.
2. These projects are set to:
   1. Transform India into a global semiconductor hub.
   2. Boost economic growth.
   3. Boost innovation in the country.

The Three Semiconductor Projects

1. Dholera Special Investment Region (DSIR) in Gujarat

1. Semiconductor fabrication facility
2. Investment: Rs 91,000 crore
3. Expected to commence chip production by 2026
4. Established by Tata Electronics Private Limited (TEPL) in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC)
5. Powered by renewable energy
6. Dedicated water supply from Narmada river canal

2. Morigaon, Assam

1. Outsourced Semiconductor Assembly and Test (OSAT) facility
2. Investment: Rs 27,000 crore
3. Developed by Tata Electronics Private Limited (TEPL)
4. Will serve to electric vehicles, automotive, mobile phones, and power devices

3. Sanand, Gujarat

1. Outsourced Semiconductor Assembly and Test (OSAT) facility
2. Investment: Rs 7,500 crore
3. Set up by CG Power and Industrial Solutions Limited under the Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP)

India’s Semiconductor Mission

1. All 3 projects are being incentivized under the India Semiconductor Mission.
2. India Semiconductor Mission has an outlay of Rs 76,000 crore.
3. This mission aims to position India as a prominent global center for:
   1. Semiconductor design
   2. Manufacturing
   3. Technology development

Employment Opportunities

1. These semiconductor facilities are expected to generate employment opportunities for India’s youth.
2. The Dholera facility alone is estimated to create around 20,000 skilled jobs, both directly and indirectly.
3. The Morigaon plant is expected to generate 27,000 direct and indirect jobs.

Dholera Plant Details

1. The Dholera plant, jointly established by Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), aims to have its chip ready for production by the end of 2026.
2. The plant will commence operations by manufacturing 28 nanometer chips and is poised to attain a total capacity of 50,000 wafer starts per month (WSPM).

1. Wafer starts per month (WSPM) is a measurement of the output of a semiconductor wafer plant.

The chips produced at the Dholera facility will serve 7 broad sectors:

1. High-power computing
2. Electric vehicles
3. Telecom
4. Defence
5. Consumer electronics
6. Automobile
7. Power electronics

Government Support:

1. Up to 70% of the Dholera project cost is estimated to be covered by government subsidies from both central and state authorities.
2. This makes it India's leading commercial semiconductor fab
3. This has been a long-term goal of the government.

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