Key Takeaways:

• India is positioned to be the global hub for semiconductor design, manufacturing, and technology development
• Significant investments are being made in establishing various semiconductor facilities throughout the country
• Foreign companies have been showing considerable interest in penetrating the evolving Indian semiconductor industry

 

March 13 is considered a “special day” for India, signifying the country’s efforts to become a semiconductor hub. Prime Minister Narendra Modi laid the foundation stone of three semiconductor projects worth about INR 1.25 lakh crore via video conferencing.

The three crucial projects for which the foundation stone was laid are the Semiconductor fabrication facility at the Dholera Special Investment Region (DSIR), Gujarat; Outsourced Semiconductor Assembly and Test (OSAT) facilities at Morigaon in Assam, and Sanand in Gujarat.

The projects are in line with the prime minister’s vision to position India as a prominent global center for semiconductor design, manufacturing, and technology development, thereby creating numerous employment opportunities for the country’s youth.

The semiconductor fabrication facility at the Dholera Special Investment Region (DSIR) will be established by Tata Electronics Private Limited (TEPL) under the Modified Scheme for setting up semiconductor fabs in India. With an investment exceeding INR 91,000 crores, this will mark the inauguration of the country’s first commercial semiconductor fab.

The Outsourced Semiconductor Assembly and Test facility in Morigaon will be developed by Tata Electronics Private Limited (TEPL) under the Modified Scheme for Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), with an investment of about INR 27,000 crore.

The OSAT facility in Sanand will be established by CG Power and Industrial Solutions Limited under the Modified Scheme for Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), with an investment of approximately INR 7,500 crore.

These initiatives will fortify the semiconductor ecosystem in India, providing a solid foundation for its growth. The facilities are expected to generate employment opportunities for thousands of youth within the semiconductor industry and stimulate job creation in allied sectors such as electronics and telecommunications.

 

Foreign Investment Opportunities

Tower Semiconductor—an Israel-based company—has been in talks with India, including a meeting last October between Tower Semiconductor CEO Russell C Ellwanger and Minister of State for IT Rajeev Chandrasekhar. The purpose of the meeting was to explore investment opportunities in the nation.

Micron Technology began construction on its chip assembly and test facility in Sanand, Gujarat, India, in September 2023. The facility, called the Assembly, Test, Marking, and Packaging (ATMP) unit, would transform wafers into ball grid arrays, memory modules, and solid-state drives. The $2.75 billion plant, expected to start operations in the next 12 months, will create 5,000 direct jobs and 15,000 community job opportunities.

If you’re planning to establish an enormous chip manufacturing unit, willing to collaborate with other semiconductor manufacturers to amplify the production, identify cost-effective fabrication technologies, or gather insights into India’s further plans to boost the semiconductor sector; leverage our spectrum of customized solutions by filling out the form below.

 

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