India Gets Its First Semiconductor Fab, Tata to Invest Rs 27,000 Crore in Assam Unit

In a major boost to India's self-reliance efforts, the Union Cabinet has approved the setting up of the country's first commercial semiconductor fabrication unit (fab) in Dholera, Gujarat. This initiative, spearheaded by Prime Minister Narendra Modi, marks a significant step towards achieving an "Atmanirbhar Bharat" (self-reliant India) in the crucial electronics sector.

Union Minister Ashwini Vaishnaw said, "All three units will start construction within the next 100 days. 50,000 wafer per month will be manufactured. 300 crore chips will be manufactured annually through this facility. Northeast will get its first semiconductor Unit in Assam. 48 million chips per day will be manufactured from here. Cumulative investment in all three units will be one lakh twenty-six thousand crore. The breakdown is investment in FAB will be 91,000 crore. Investment in the Assam unit will be 27,000 crore. Investment in the Sanand unit will be Rs 7,600 crore"

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#WATCH | Union Minister Ashwini Vaishnaw says, "...All three units will start construction within the next 100 days. 50,000 wafer per month will be manufactured. 300 crore chips will be manufactured annually through this facility. Northeast will get its first semiconductor Unit… pic.twitter.com/58Y4gkqDSm

— ANI (@ANI) February 29, 2024

A partnership between Tata Electronics Private Limited and Taiwan-based Powerchip Semiconductor Manufacturing Corp will establish the fab. The total cumulative investment across three units is estimated at Rs 1,26,000 crore, with Rs 91,000 crore allocated for the main fab in Gujarat. 

"Today, PM Modi has decided to approve semiconductor fab in the country. This is a big, decisive decision concerning PM Modi's pledge for an 'Atmanirbhar Bharat'. India's first commercial (semiconductor) fab will be made in collaboration between Tata and Power Chip, Taiwan, in Dholera (in Gujarat) special industrial region," said Union minister Ashwini Vaishnaw during a Cabinet briefing.

The total cumulative investment across three units is estimated at Rs 1,26,000 crore, with Rs 91,000 crore allocated for the main fab in Gujarat. Notably, the Northeast region will see its first semiconductor unit set up in Morigaon, Assam, with an investment of Rs 27,000 crore.

The Dholera facility is expected to produce 50,000 wafers monthly and manufacture 300 crore chips annually. The Assam unit will have a daily production capacity of 48 million chips. All three units are expected to begin construction within the next 100 days.

The Cabinet also approved the PM-Surya Ghar: Muft Bijli Yojana, a scheme aimed at installing rooftop solar panels in 1 crore houses with an outlay of Rs 75,021 crore.