Cabinet clears three semiconductor plants with an investment of US$ 15.2 billion (Rs. 1.26 trillion)

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India Takes Giant Leap with $15.2 Billion Investment in Semiconductor Plants

Team Finance Saathi

04/Mar/2024

The Union Cabinet's approval of a massive $15.2 billion investment across three semiconductor plants signals a monumental advancement in India's technological landscape. Spearheaded by the Tata Group, these initiatives promise to revolutionize India's semiconductor capabilities, creating thousands of skilled jobs and paving the way for innovation across various sectors.

In a historic move aimed at propelling India's technological prowess to new heights, the Union Cabinet has greenlit a colossal investment of $15.2 billion in three semiconductor plants. At the forefront of this groundbreaking initiative is the Tata Group, which plans to establish the country's primary chip fabrication facility in Dholera, Gujarat, with an investment of $11 billion. Partnering with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC), the Dholera plant is poised to become a hub for high-performance computing chips with 28nm technology, catering to diverse sectors such as electric vehicles, telecom, defence, and consumer electronics.

The establishment of the Dholera plant is expected to generate a staggering 20,000 direct and indirect skilled jobs, underscoring its significance in driving economic growth and fostering technological innovation. Furthermore, Tata's semiconductor arm, Tata Semiconductor Assembly and Test (TSAT), will set up another semiconductor plant in Morigaon, Assam, with an investment of $3.3 billion. This initiative is projected to create an estimated 27,000 direct and indirect jobs, further solidifying India's position as a global semiconductor manufacturing hub.

The government's unwavering commitment to bolstering India's semiconductor capabilities is evident in the substantial subsidies already disbursed as part of the India Semiconductor Mission, totaling $7.1 billion. With a total allocation of $9.2 billion, this landmark initiative underscores India's determination to harness cutting-edge technology and foster innovation in key sectors.

In conclusion, the approval of this monumental investment in semiconductor plants marks a transformative moment for India's technological landscape. With the Tata Group leading the charge, these initiatives are poised to drive economic growth, create thousands of jobs, and position India as a global leader in semiconductor manufacturing. As the nation embarks on this ambitious journey, the possibilities for innovation and progress are boundless.

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India Takes Giant Leap with $15.2 Billion Investment in Semiconductor Plants

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