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  4. Two multi-billion dollar semiconductor plants to come up in India: Rajeev Chandrasekhar

Two multi-billion dollar semiconductor plants to come up in India: Rajeev Chandrasekhar

The minister of electronics and IT said that one of the projects has an $8 billion proposal from Israel-based Tower Semiconductors, with the other coming from Tata Group.

Edited By: Akshit Tyagi New Delhi Published on: February 19, 2024 7:35 IST
Rajeev Chandrasekhar
Image Source : PTI (FILE) Rajeev Chandrasekhar

India is set to witness the establishment of two major semiconductor fabrication plants, each involving multi-billion dollar investments, alongside multiple chip assembly and packaging units, according to Minister of Electronics and IT Rajeev Chandrasekhar.

Chandrasekhar said that one of the projects involves an $8 billion proposal from Israel-based Tower Semiconductors, with the other coming from Tata Group.

Chandrasekhar emphasised the significance of these forthcoming fabs, which will utilise 65, 40, and 28-nanometer technologies, alongside various packaging proposals under evaluation. He indicated that these projects are expected to receive approval during the third term of Prime Minister Narendra Modi, should they not be cleared before the upcoming general elections.

The government has received four proposals for semiconductor manufacturing plants and 13 for chip assembly, testing, monitoring, and packaging units. This announcement comes in addition to the ongoing establishment of a chip assembly plant by US-based Micron in Gujarat, amounting to Rs 22,516 crore.

Reflecting on India's semiconductor journey, Chandrasekhar highlighted the strides made since 2014, particularly after the launch of the semiconductor programme in January 2020. He underscored the need to catch up on 75 years of missed opportunities and noted significant progress in semiconductor design, startups, research, talent development, packaging, and fabrication.

Government data indicates a substantial increase in domestic electronics manufacturing over the past decade, with the sector expected to grow further to Rs 23,95,195 crore by 2026. Chandrasekhar also advocated for reducing import duties on electronic components to facilitate export-led manufacturing, drawing inspiration from Andrew Grove's philosophy of "Only the Paranoid Survive."

India's role in the global electronics supply chain has been evolving, with a shift away from China towards alternative hubs. Chandrasekhar highlighted India's contribution to this shift and emphasised the country's ambition to become a global leader in electronics manufacturing, citing achievements in mobile handset production and export.

With 99.20 per cent of mobile handsets now manufactured domestically, India aims to further its success in electronics manufacturing, targeting $300 billion by 2026-27. Chandrasekhar expressed confidence in India's potential to become a trusted partner in the global value chains for electronics, including smartphones, IT hardware, laptops, servers, and other hardware components.

(With PTI Inputs)

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