Two big semiconductor proposals are under process, says Ashwini Vaishnaw

Don't want to miss the best from Business Standard?

Two big semiconductor proposals are under process and expected to take shape in the coming few months, Union minister Ashwini Vaishnaw said on Saturday.

Without divulging specifics of the proposals, the minister said the projects will focus on a special area where India can emerge as a leader at the global level.

While speaking with PTI on the sidelines of the groundbreaking ceremony of Micron's semiconductor plant, Vaishnaw said that the global semiconductor company is noticing the progress made by India in the segment and Prime Minister Narendra Modi's capability to execute large and complex policy decisions.

"This has developed India as a major trusted geography in which global industry players want to come. We can see in the coming few months at least two more large semiconductor proposals taking shape," Vaishnaw said.

He said that there are some specific areas where India can take the lead and the focus of the semiconductor projects will be in areas that can help the country export technology to other parts of the world.

The minister said that the Micron plant, for which construction has started, will start producing the first chip from December 2024 onwards.

Memory chip maker Micron in June announced setting up a semiconductor assembly and test plant in Gujarat entailing a total investment of USD 2.75 billion (around Rs 22,540 crore).

Micron will invest up to USD 825 million in setting up the plant in two phases and the rest of the investment will come from the Centre and the state government.

The company has roped in Tata Projects for phased construction of the new assembly and test facility in Sanand.

Phase 1 will include 500,000 square feet of planned cleanroom space, and will start to become operational in late 2024.

The minister said semiconductor demand is expected to grow to Rs 5 lakh crore in coming years from about Rs 2 lakh crore.

"India is already a very large design hub. With manufacturing coming to India, the entire process and value chain will come to our country and Bharat will become a major semiconductor hub in coming years," Vaishnaw said.

Micron Senior Vice President Gursharan Singh at the event said that the company has boarded the first set of 34 employees for the plant.

Five suppliers of Micron including SIMTEC are evaluating possibilities to set up their plant in India, according to government officials.

Minister of State for Electronics and IT Rajeev Chandrasekhar said that the Micron facility in Gujarat marks the beginning of an exciting journey in India's semiconductor ecosystem, in making India a semiconductor nation.

"Micron's state-of-the-art modern facility will serve as a beacon for all investors, manufacturers, and participants in the global semiconductor ecosystem, encouraging them to partner with India," Chandrasekhar said.