PM Modi lays foundation for semiconductor projects worth Rs 1.25 trillion

The 3 semiconductor projects include the Semiconductor Fabrication Facility at the DSIR in Gujarat, the OSAT facility in Morigaon, Assam, and another OSAT facility in Sanand, Gujarat

Prime Minister Narendra Modi participated in the inauguration of "India's Techade: Chips for Viksit Bharat", where he laid the foundation stone for three semiconductor projects collectively worth around Rs 1.25 trillion on Wednesday, through a video conferencing session. The Prime Minister also took this opportunity, where thousands of students were present, to address the youth of the nation.

"We are taking a big step towards a bright future," the Prime Minister stated after laying the foundation stone. Adding, "Today is a historic day. We are scripting history & taking a strong step ahead towards a bright future."

PM Modi announced that more than 60,000 colleges, universities & educational institutes were associated with today's event, and leaders from Taiwan had also reportedly joined the programme virtually, underscoring the importance of the semiconductor plant in India.

The foundation stones were laid for three crucial semiconductor projects: the Semiconductor Fabrication Facility at the Dholera Special Investment Region (DSIR) in Gujarat, the Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, and another OSAT facility in Sanand, Gujarat.

These initiatives align with Prime Minister Modi's vision to position India as a global hub for semiconductor design, manufacturing, and technology development. This also aims to generate employment opportunities for the nation's youth.

Speaking at the occasion, N Chandrasekaran, chairman, Tata Sons Pvt Ltd said,  “Today, is indeed a special day for the Tata Group – with the foundation stone being laid simultaneously for our projects in Dholera and Jagiroad 2,500 km apart. These semiconductor manufacturing hubs will have a lasting impact on the entire nation. The ecosystem from across the globe will mobilise to have India as their preferred semiconductor destination. On this historic occasion, I would like to thank Prime Minister Narendra Modi for his enduring vision to bring the semiconductor industry to the shores of our country.”

DSIR in Gujarat - Rs 91,000 crore

The Semiconductor Fabrication Facility at the Dholera Special Investment Region (DSIR) will be jointly established by Tata Electronics Private Limited (TEPL) and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) under the Modified Scheme for setting up Semiconductor Fabs in India. With an investment exceeding Rs 91,000 crore, this facility will mark India's first commercial semiconductor fab, initially producing 28-nanometer chips. The venture is estimated to create around 20,000 skilled jobs directly and indirectly.

As Business Standard reported earlier, the plant is projected to commence chip production by the end of 2026. According to PSMC chairman Frank Huang, the Dholera facility will focus on manufacturing chips for various sectors, such as high-power computing, electric vehicles, telecom, defence, consumer electronics, automobiles, and power electronics.

OSAT facility in Assam - Rs 27,000 crore

TEPL will establish the Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam. This facility carries an investment of about Rs 27,000 crore under the Modified Scheme for Semiconductor Assembly, Testing, Marking, and Packaging (ATMP). The facility will contribute to bolstering India's semiconductor ecosystem and creating employment opportunities in related sectors like electronics and telecom.

This is a greenfield project of TEPL and is poised to generate employment opportunities for more than 30,000 people.

Chief Minister Himanta Biswa Sarma, who was present at the event, wrote in a tweet ahead of the inauguration, "People of Assam eagerly await this game-changing project-which has moved from conception to implementation in a record time period... Tomorrow marks a new dawn for Assam and the North East. Once known for being a hotbed of insurgency, we are transforming into an epicentre of big bang investment and projects."

OSAT facility in Gujarat - Rs 7,500 crore

The OSAT facility in Sanand, Gujarat, will be set up by CG Power and Industrial Solutions Limited and Rs 7,500 crore under the Modified Scheme for Semiconductor ATMP.