India approved the building of three semiconductor plants on February 29, 2024. Their total cost is 1.26 trillion rupees ($15.2 billion). Tata Group and CG Power will construct these plants. This move is important for India’s aim to be a key figure in the electronics industry.
India’s economy is growing fast, and its demand for technology is rising. The country wants to compete with places like Taiwan in making chips. By 2026, India’s market for semiconductors could be worth $63 billion. However, right now, India doesn’t have its own facility for making chips.
Prime Minister Narendra Modi has expressed his desire to make India a global leader in chip manufacturing, and his government has been working towards this goal by offering $10 billion in incentives to the industry. The approval of these three new chipmaking units marks a major milestone in this effort.
The construction of these plants will begin within the next 100 days, according to Indian Electronics Minister Ashwini Vaishnaw. They will focus on producing and packaging chips for various sectors including defence, automobiles, and telecommunications.
This is a big decision for the country and a key accomplishment towards making India self-sufficient, Vaishnaw said during a press conference.
Source: Reuters
Tata Group will partner with Taiwan’s Powerchip to establish India’s first chipmaking plant in Gujarat state’s Dholera, with a total investment of 910 billion rupees. CG Power will also be involved in the development of a chip packaging plant worth 76 billion rupees in the same state, along with partners Renesas Electronics Corp from Japan and Stars Microelectronics from Thailand.
The third chip packaging plant, worth 270 billion rupees, will be set up in the eastern state of Assam by Tata unit Tata Semiconductor Assembly and Test Pvt Ltd.
These developments are crucial for India’s economy and its efforts to reduce its reliance on imported technology. The country’s push towards self-sufficiency in the electronics industry is not only beneficial for its own growth, but also has the potential to boost global competition and innovation.
The approval of these three chipmaking units is a significant step towards achieving India’s goal of becoming an electronics powerhouse. With its growing economy and strong focus on technology, it is only a matter of time before we see India emerge as a major player in the global tech market.
