Indian Economy News

Cabinet clears three semiconductor plants with an investment of US$ 15.2 billion (Rs. 1.26 trillion).

  • IBEF
  • March 4, 2024

The Union Cabinet has approved a colossal investment of US$ 15.2 billion (Rs. 1.26 trillion) across three semiconductor plants, marking a significant stride in India's technological advancement. A pivotal component of this initiative is the Tata Group's proposal to construct the country's primary chip fabrication facility in Dholera, Gujarat, with an investment of US$ 11 billion (Rs. 91,000 crore) In collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC), the Dholera plant is expected to create 20,000 direct and indirect skilled jobs, specializing in high-performance computing chips with 28nm technology. The semiconductor's applications will span diverse sectors, including high-power computing, electric vehicles, telecom, defence, consumer electronics, automobile, and power electronics.

Additionally, Tata's semiconductor arm, Tata Semiconductor Assembly and Test (TSAT) will establish another semiconductor plant in Morigaon, Assam, with an investment of US$ 3.3 billion (Rs. 27,000 crore), generating an estimated 27,000 direct and indirect jobs. Notably, subsidies totalling US$ 7.1 billion (Rs. 59,000 crore) have already been disbursed as part of the India Semiconductor Mission, with a total allocation of US$ 9.2 Billion (Rs. 76,000 crore). This landmark initiative signifies a strategic leap in bolstering India's semiconductor capabilities, demonstrating the nation's commitment to fostering cutting-edge technology and innovation.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.