PM Modi Inaugurates Three Semiconductor Plants in India; Starting with 28nm Chips

At the “India’s Techade: Chips for Viksit Bharat” event, Prime Minister Narendra Modi laid the foundation stones of three semiconductor facilities. The plan to manufacture chips in India is a highly ambitious project and the government is significantly subsidizing (about 70%) the cost to make India a hub for silicon fabrication. The Indian government isinvesting over Rs. 1.25 lakh croreinto three semiconductor plants in India.13th March 2024 – a special day in India’s efforts to become a hub for semiconductors. Tomorrow, will take part in the ‘India’s Techade: Chips for Viksit Bharat’ programme and lay the foundation stones for three semiconductor facilities worth over Rs. 1.25 lakh crore.Among the…pic.twitter.com/0OQg4k4DjZ— Narendra Modi (@narendramodi)March 12, 2024

13th March 2024 – a special day in India’s efforts to become a hub for semiconductors. Tomorrow, will take part in the ‘India’s Techade: Chips for Viksit Bharat’ programme and lay the foundation stones for three semiconductor facilities worth over Rs. 1.25 lakh crore.Among the…pic.twitter.com/0OQg4k4DjZ— Narendra Modi (@narendramodi)March 12, 2024

The first commercial semiconductor fab is being set up in Dholera, Gujarat byTata Electronics Private Limited (TEPL). Tata has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to set up the fabrication facility.

PSMC will help with the technology transfer to India and TEPL plans toroll out 28nm chipsby the end of 2026, according to areportbyThe Economic Times. In the coming years, the plant can churn out 22nm chips. PSMC is ranked as the 7th largest semiconductor foundry globally.

Initially, it would start manufacturing chips for microcontrollers, power management ICs, wireless devices, automotive chips, and more. Tata has set out an ambitious plan and has already hired the ex-president ofIntel Foundry Services, Randhir Thakur as TEPL’s CEO.

The company has also roped inSrinivas Satya, the Country President of Applied Materials India as TEPL’s chief supply chain officer. The government is investing about Rs. 91,000 crore into this facility.

Apart from that, another semiconductor plan will be established inMorigaon, Assam by TEPL. It has received an investment of close to Rs. 27,000 crore.

Finally, the third semiconductor fab will be set up inSanand, Gujaratby CG Power and Industrial Solutions, attracting an investment of Rs. 7,500 crore from the government. Both these facilities will be used for semiconductor assembly, testing, marking, and packaging (also called ATMP).

While India is at a nascent stage in semiconductor manufacturing, it can accelerate growth with global investments, industry-academic collaboration, and government support. According to aBBCreport, India has top global talent in chip design,close to 20%. Many companies like Intel, AMD, and Qualcomm have R&D facilities in India that take advantage of local engineering talent.

Now, with a homegrown semiconductor foundry, India stands a chance to become a key player like South Korea, Taiwan, Japan, and China. We should also note thatIndia slashed import duty on smartphonesrecently and the country is slowly becoming one of the largest exporters of electronics in the world.

Arjun Sha

Passionate about Windows, ChromeOS, Android, security and privacy issues. Have a penchant to solve everyday computing problems.

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