Union Minister Ashwini Vaishnaw said that the first chip from Gujarat’s Sanand factory will be created in December 2024, and the larger facility in Dholera will begin chip production in December 2026.
Union Minister for Railways, Communications, Electronics, and Information Technology Ashwini Vaishnaw stated on March 13 that the first chip from the upcoming semiconductor fabrication plant in Sanand, Gujarat, will be produced in December 2024. The Union Minister made the statement while laying the groundwork for Tata-Powerchip Semiconductor Manufacturing Corp’s chip fabrication facility in Dholera, Gujarat.
Regarding the larger factory planned in Dholera, Gujarat, Vaishnaw noted that chip production is likely to begin in December 2026. “The Dholera factory will generate its first chip in December 2026. The first chip would be made at the Sanand plant in December 2024, according to the minister in a video posted by ANI.
The two semiconductor fabrication units in Gujarat are one of the key pillars of India’s plan to develop a homegrown manufacturing and automation ecosystem that will, in turn, help to lessen the country’s dependence on imports. Sanand project, a collaboration between Vedanta-Foxconn joint venture, is supposed to cost more than $20 billion.
Prime Minister Narendra Modi started the work on three new chip manufacturing plants in Gujarat and Assam on Wednesday, while this provided solid ground for the development of a stable and reliable semiconductor ecosystem in India. The event, themed ‘India’s Techade: This brought a paradigm shift in this initiative and marked a turning point in the country’s semiconductor industry development.
While for Micron, an American chipmaker, production of top-end semiconductors in its Sanand Gujarat, India’s first such unit, is fast progressing and the facility is expected to be operational by the end of 2024. Micron Technology would extend the investment of 2.5 billion US dollars (INR 22,500 crore) in the assembly, test, marking, and packaging (ATMP) plant.
“This is a historic day because we are taking a strong step towards a bright future,” Modi remarked at the virtual event, highlighting the significance of ‘Made in India’ semiconductor chips in moving the country toward self-reliance and modernity.
The government’s ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’ program includes three facilities valued at around ₹1.25 lakh crore. The initiative will be launched in December 2021 with a total budget of Rs. 76,000 crore.
“When India commits, India delivers, and democracy also delivers,” Modi said, underlining the government’s determination to make the country a chip manufacturing hub.
Tata Electronics Private Limited (TEPL) plans to invest ₹91,000 crore in establishing a semiconductor fab in Dholera, Gujarat, in cooperation with Powerchip Semiconductor Manufacturing Corp. (PSMC), Taiwan.
CG Power, in cooperation with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, would invest ₹7,600 crore to build a semiconductor factory in Sanand, Gujarat.
Tata Semiconductor Assembly and Test Pvt. Ltd. (TSAT) plans to develop a semiconductor plant in Morigaon, Assam, with a daily manufacturing capacity of 48 million chips and an investment of ₹27,000 crore.
These units are planned to create 20,000 direct jobs in advanced technology and roughly 60,000 indirect jobs, while also boosting employment growth in downstream industries like as automotive, electronics, telecom, and industrial manufacturing.
