The Union Cabinet’s Semiconductors Boost: A Game-Changer for India’s Tech Landscape

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The Union Cabinet on Thursday greenlit three semi-conductor projects in Gujarat and Assam, a significant move set to transform India’s tech industry. Tata’s Dholera fab, Powerchip-Taiwan collaboration, and CG Power’s venture promise a total investment of Rs 1.26 lakh crore. Dive into the details of these groundbreaking initiatives reshaping India’s semi-conductor landscape.



In a monumental decision, The Union Cabinet approved three groundbreaking semiconductor projects, ushering in a new era for India’s technology sector. This move, encompassing ventures by Tata Group, Powerchip-Taiwan collaboration, and CG Power, is set to infuse Rs 1.26 lakh crore into the country’s semi-conductor industry. Let’s delve into the specifics of these projects, their potential impact, and what they mean for India’s technological prowess.

Tata’s Vision: India’s First Semiconductor Fab in Dholera

The Prime Minister’s Momentous Decision

On February 29, IT Minister Ashwini Vaishnaw announced the approval of India’s first semi-conductor fab by Tata Group and Powerchip-Taiwan collaboration in Dholera, Gujarat. This marks a historic moment as India steps into the global semi-conductor arena, a vision propelled by the Prime Minister’s decisive actions.

Tata Electronics and Powerchip Collaboration

Tata Electronics Private Limited (TEPL), in collaboration with Powerchip Semi-conductor Manufacturing Corp (PSMC), Taiwan, will spearhead the establishment of the semi-conductor fab in Dholera. With an investment of Rs.91,000 crore, this facility is poised to have a monthly capacity of 50,000 wafer starts.

PSMC’s Expertise

Powerchip Semi-conductor Manufacturing Corp, renowned for its proficiency in logic and memory foundry segments, brings invaluable expertise to the partnership. With six semi-conductor foundries in Taiwan, PSMC’s technological prowess will play a pivotal role in shaping India’s semiconductor landscape.

Dholera’s Semi-conductor Fab Segments

The semi-conductor fab in Dholera will focus on two key segments:

  1. High-Performance Compute Chips: Utilizing 28 nm technology, these chips are geared towards enhancing computing capabilities.
  2. Power Management Chips: Targeting applications in electric vehicles, telecom, defense, automotive, consumer electronics, display, power electronics, and more, these chips address high voltage and high current requirements.

Assam’s Role: Semiconductor ATMP Unit

Tata’s Semi-conductor Assembly and Testing Unit in Assam

As part of the approved proposals, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a semi-conductor assembly and testing unit in Morigaon, Assam, with an investment of Rs.27,000 crore.

Assam’s Contribution to Semiconductor Manufacturing

This unit in Assam is integral to the overall semi-conductor ecosystem, emphasizing the government’s commitment to fostering tech development across multiple states.

CG Power and Japan’s Renesas: A Joint Venture in Gujarat

Sanand’s Semiconductor Plant

In addition to Tata’s initiatives, CG Power and Japan’s Renesas will collaborate on a semi-conductor plant in Gujarat’s Sanand. With an estimated investment of Rs 7,600 crore, this facility aims to produce a staggering 15 million chips per day.

Diversifying Semi-conductor Production

The collaboration between CG Power and Renesas further diversifies Gujarat’s semiconductor landscape, contributing significantly to India’s chip manufacturing capabilities.

Micron’s Contribution: A Comprehensive Chip Assembly Plant

Micron’s Ongoing Project

These ventures complement the ongoing Rs 22,516-crore chip assembly plant project by US-based memory chip maker Micron in India, solidifying the country’s position in the global semiconductor market.

Unveiling TSAT Semiconductor’s Cutting-Edge Technologies

In the ever-evolving landscape of technology, TSAT Semiconductor emerges as a pioneer, revolutionizing semiconductor packaging. Dive into the realm of indigenous advancements, from flip chip to ISIP (integrated system in package) technologies.

Driving Capacity: 48 Million Per Day

TSAT Semi-conductor is not just about innovation; it’s about scale. With a staggering daily capacity of 48 million units, this technological powerhouse is set to redefine the semiconductor industry.

Niche Domains Encompassed

Explore the diverse segments that TSAT Semiconductor caters to, ranging from Automotive and Electric Vehicles to Consumer Electronics, Telecom, and Mobile Phones. The scope is vast, and the impact, profound.

The Rise of Semiconductor ATMP Unit

Collaboration fuels progress. CG Power, in synergy with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, embarks on a groundbreaking venture. Witness the establishment of a semiconductor unit in Sanand, Gujarat, dedicated to specialized chips.

A Financial Commitment of Rs.7,600 Crore

Investment speaks volumes, and this venture echoes commitment. The semiconductor unit in Sanand comes to life with a substantial investment of Rs.7,600 crore, underscoring the seriousness of the endeavor.

Renesas: A Technological Vanguard

Meet Renesas, a pivotal player in the semiconductor realm, specializing in chips. With 12 semiconductor facilities and expertise in microcontrollers, analog, power, and System on Chip (‘SoC)’ products, Renesas brings unmatched technological prowess.

Expansive Segments Covered

The CG Power semiconductor unit is not confined; it’s expansive. Consumer, industrial, automotive, and power applications fall under its manufacturing umbrella. Versatility meets precision in this technological symphony.

Strategic Significance Unveiled

In a remarkably short span, the India Semiconductor Mission achieves milestones. These units pave the way for a robust semiconductor ecosystem within the nation’s borders.

Fostering Capabilities in Chip Fabrication

India boasts deep capabilities in chip design, and these units mark a significant leap towards indigenous chip fabrication. The trajectory is set, and the destination is self-reliance.

Indigenous Advanced Packaging Technologies

Today’s announcement echoes beyond manufacturing – it resonates with innovation. Advanced packaging technologies will be nurtured indigenously, heralding a new era in India’s technological landscape.

Igniting Employment Potential

These ventures are not just about technology; they are about people. Witness the creation of 20 thousand direct advanced technology jobs and a ripple effect of 60 thousand indirect jobs.

Catalyzing Downstream Industries

Beyond the immediate impact, these units catalyze employment creation in downstream sectors – automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and various semiconductor-consuming industries.


Q: How much is the total investment in the approved semi-conductor projects? A: The total investment in the approved semiconductor projects, including Tata’s Dholera fab, Powerchip-Taiwan collaboration, and CG Power’s venture, is Rs 1.26 lakh crore.

Q: What is the capacity of Tata’s semi-conductor fab in Dholera? A: Tata’s semiconductor fab in Dholera is designed with a monthly capacity of 50,000 wafer starts.

Q: What segments will be covered by the semi-conductor fab in Dholera? A: The Dholera fab will focus on producing high-performance compute chips with 28 nm technology and power management chips for various applications.

Q: Which companies are collaborating on the semi-conductor plant in Gujarat’s Sanand? A: CG Power and Japan’s Renesas are joining forces to set up the semiconductor plant in Gujarat’s Sanand.

Q: What is the investment in Tata’s Semiconductor Assembly and Testing Unit in Assam? A: Tata’s Semiconductor Assembly and Testing Unit in Assam will be established with an investment of Rs.27,000 crore.

Q: How many chips per day does the CG Power and Renesas collaboration aim to produce? A: The collaboration between CG Power and Renesas in Gujarat’s Sanand aims to produce 15 million chips per day.


The Union Cabinet’s approval of these semiconductor projects is a game-changer for India’s technology landscape. Tata’s pioneering efforts in Dholera, CG Power and Renesas’ joint venture in Gujarat, and Micron’s ongoing project collectively position India as a formidable player in the global semi-conductor market. This infusion of technology and investment underscores the nation’s commitment to technological advancements and economic growth.

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