NEW DELHI (Diya TV) — In a significant move towards bolstering its semiconductor industry, India’s government has approved investments totaling $15.2 billion in semiconductor fabrication plants. This includes the green light for Tata Group’s proposal to establish the nation’s first major chip making facility. Prime Minister Narendra Modi’s cabinet gave the nod to Tata’s ambitious plan, which involves constructing a site capable of producing approximately 50,000 wafers per month. Additionally, Tata’s separate proposal for a chip assembly plant exceeding $3 billion has been cleared, along with a packaging venture involving Japan’s Renesas Electronics Corp. and the Murugappa Group’s CG Power and Industrial Solutions Ltd.
This approval marks a significant stride in India’s semiconductor ambitions, reflecting the government’s commitment to nurturing domestic chip manufacturing capabilities. The move aligns with global trends, as nations worldwide seek to strengthen their semiconductor industries to secure the supply of vital components for future technologies, ranging from artificial intelligence to autonomous vehicles.
Tata’s envisioned chip making facility, expected to kickstart within 100 days, aims to address the growing demand for chips in various sectors, including consumer electronics, automobiles, defense systems, and aircraft. The conglomerate is likely to collaborate with Taiwan’s Powerchip Semiconductor Manufacturing Corp. for this project, signaling a strategic partnership to enhance India’s semiconductor ecosystem.
Furthermore, India’s semiconductor push extends beyond Tata’s endeavors. US semiconductor giant Qualcomm is poised to invest $1 billion in India, surpassing its competitors such as AMD and Micron. Qualcomm’s substantial investment underscores the growing importance of India’s semiconductor landscape and its potential as a key player in global chip manufacturing.
The government’s support for semiconductor investments underscores its broader strategy to position India as a global manufacturing hub and reduce dependence on expensive chip imports. By incentivizing and backing semiconductor projects, India aims to bolster its manufacturing sector and foster innovation in high-tech industries.
Overall, India’s approval of significant investments in semiconductor plants marks a crucial step towards achieving self-reliance in chip manufacturing and positioning the country as a prominent player in the global semiconductor industry.
