Dholera, Sanand semiconductor plants to start chip production by late 2024, 2026: Ashwini Vaishnaw

Union Minister for Railways, Communications, Electronics & Information Technology Ashwini Vaishnaw speaking on updates on the country's semiconductor manufacturing plans said that the first chip in 2024 from the upcoming semiconductor fabrication plant in Sanand, Gujarat, will be produced by December 2024, on March 13. The Union Minister made the announcement during foundation stone laying of Tata-Powerchip Semiconductor Manufacturing Corp chip fabrication unit, in Dholera, Gujarat.

Regarding the larger facility planned in Dholera, also in Gujarat, Vaishnaw stated that chip production is expected to commence by December 2026. "In December 2026, the first chip from the Dholera plant will be produced. In December 2024, the first chip will be produced from the Sanand plant," the minister said in the video shared by ANI.

In a significant boost to India's efforts to establish a robust semiconductor ecosystem, Prime Minister Narendra Modi on Wednesday laid the foundation stones for three new chip manufacturing plants, two in Gujarat and one in Assam. The event, titled 'India's Techade: Chips for Viksit Bharat,' marked a milestone in the country's endeavour to ramp up its semiconductor industry.

Meanwhile, American chipmaker Micron's high-end semiconductor fabrication plant at Sanand, Gujarat, India's first such facility, is progressing rapidly and is expected to be operational by late 2024. Micron Technology is investing USD 2.5 billion (INR 22,500 crore) in this assembly, test, marking, and packaging (ATMP) facility.

"This is a historic day as we are taking a strong step towards a bright future," Modi said during the virtual event, emphasizing the importance of the 'Made in India' semiconductor chips in propelling the nation towards self-reliance and modernity.

The trio of facilities, totalling a financial commitment of approximately ₹1.25 lakh crore, are integral to the government's ambitious 'Development of Semiconductors and Display Manufacturing Ecosystems in India' initiative. Launched in December 2021, the program boasts a total budget of Rs. 76,000 crore.

"When India commits, India delivers and democracy also delivers," Modi stated, reaffirming the government's commitment to making the country a semiconductor manufacturing hub.

The approved semiconductor units include:

Tata Electronics Private Limited (TEPL) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat, with an investment of ₹91,000 crore.

CG Power, in partnership with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, will construct a semiconductor facility in Sanand, Gujarat, investing ₹7,600 crore.

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will establish a semiconductor plant in Morigaon, Assam, with a daily production capacity of 48 million chips and an investment of ₹27,000 crore.

These units are expected to generate direct employment for 20,000 advanced technology jobs and approximately 60,000 indirect jobs, while also accelerating employment creation in downstream industries such as automotive, electronics, telecom, and industrial manufacturing.