New semiconductor projects set to propel electronics manufacturing to $300 Billion: Ashwini Vaishnaw

Ashwini Vaishnaw, Union Minister, recently announced that the approval of four semiconductor projects, part of the government's Rs 76,000 crore ($10 billion) capex-linked incentive scheme, will significantly boost electronics manufacturing. This initiative aims to elevate the current $105 billion industry to a remarkable $300 billion in the coming years.

The Union Cabinet greenlit three projects under the scheme, amounting to investments worth Rs 1.26 lakh crore, while a similar initiative by US semiconductor giant Micron received approval last year.

"This marks a significant achievement and signals a giant leap forward. Our goal now is to position India as a major player in the semiconductor value chain by 2029, aligning with PM Modi's vision for a 20-year semiconductor roadmap," stated Vaishnaw.

Among the notable proposals is the establishment of India's first semiconductor fabrication plant (fab) by Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp. (PSMC) in Gujarat's Dholera, with an estimated investment of Rs 91,000 crore. This fab is slated to predominantly produce 28 nanometre (nm) chips, along with variations in 50 nm, 55 nm, and 90 nm, boasting a network of 16,000 suppliers.

Moreover, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is set to inaugurate a semiconductor unit in Morigaon, Assam, with an investment of Rs 27,000 crore. This facility aims to produce 48 million chips daily and will focus on developing indigenous advanced semiconductor packaging technologies.

Another significant venture involves CG Power, in collaboration with Renesas Electronics Corp., Japan, and Stars Microelectronics, Thailand, establishing a semiconductor unit in Sanand, Gujarat, with an investment of Rs 7,600 crore. This unit will cater to consumer, industrial, automotive, and power applications, aiming to produce 15 million chips per day.

Despite previous challenges in attracting major foreign foundries, recent developments have shown promise. During Prime Minister Narendra Modi's US visit, Micron pledged to establish a $2.7 billion assembling plant in India. Furthermore, Applied Materials announced a $400 million investment in designing chipmaking machinery in the country, while Microchip Technology committed $300 million to expand its semiconductor R&D footprint in India.

These initiatives underscore India's commitment to bolstering its semiconductor ecosystem and contributing significantly to the global electronics manufacturing landscape.