India will become a prominent semiconductor manufacturing hub: PM Modi

India is set to become a prominent semiconductor manufacturing hub, Prime Minister Narendra Modi says at the ground-breaking ceremony of ₹1.25 lakh-crore semiconductor projects in the country.

The three facilities will drive economic growth and foster innovation, the prime minister says.

"The 21st century is technology-driven. We cannot imagine a world without electronic chips. Made in India and designed in India chip will help India achieve new milestones towards Atmanirbharta," PM Modi says.

"Today, the youth are seeing how India is working all-round for progress, for self-reliance and for its presence in the global supply chains," he says.

These efforts will also increase their self-confidence and wherever a confident youth is, he changes the destiny of his country, the prime minister adds.

PM virtually laid the foundation stone for semiconductor fabrication facility at the Dholera Special Investment Region (DSIR), Gujarat; Outsourced Semiconductor Assembly and Test (OSAT) facility at Morigaon, Assam; and the Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat.

It has been the vision of the Prime Minister to position India as a global hub for semiconductor design, manufacturing and technology development, fostering the creation of employment opportunities for the nation's youth. In line with this vision, foundation stone is being laid for the Semiconductor fabrication facility at the Dholera Special Investment Region (DSIR), Gujarat; Outsourced Semiconductor Assembly and Test (OSAT) facility at Morigaon, Assam; and the Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat.

This comes days after Tata Electronics Private Limited (TEPL) partnered with Taiwanese chipmaker Powerchip Semiconductor Manufacturing Corp (PSMC) to set up a semiconductor fab unit in Gujarat's Dholera for ₹91,000 crore.

The fab will produce 50,000 wafer starts per month (WSPM) of high-performance chips with 28-nanometre technology including power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, and power electronics among others. PSMC is known for its expertise in logic and memory foundry segments. The chipmaker has six semiconductor foundries in Taiwan.

Tata Group-owned Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam, with an investment of ₹27,000 crore. TSAT is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.

India is working on the entire semiconductor value chain and will roll out the first 'Made in India' chip by December 2024. The semiconductor value chain starts with design. The next part of the value chain is semiconductor fab and then comes the assembly, testing, marking, and packaging (ATMP).

For assembly, testing, marking, and packaging (ATMP), CG Power has joined hands with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand to set up a semiconductor unit in Sanand, Gujarat. The unit will cost ₹7,600 crore.

Together, all these units are expected to generate 20,000 jobs, the government says. Under India's semiconductors incentive plan, the government is looking to subsidise half the cost of the approved projects with an outlay of ₹76,000 crore.