Cabinet approves three New Semiconductor Units

Cabinet approves three New Semiconductor Units


Recently, the Cabinet Approved – Three New Semiconductor Units.


GS-02 (Government policies & interventions), GS-03(Growth and Development)

Key highlights:

Semiconductor Fab in Dholera, Gujarat

  • To be established by Tata Electronics Private Limited in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan.

Investment: Rs. 91,000 crore.

  • Capacity: 50,000 wafer starts per month (WSPM).
  • Segments Covered: High-performance compute chips using 28 nm technology and power management chips for electric vehicles (EVs), telecom, defense, automotive, consumer electronics, display, power electronics, etc.

Semiconductor ATMP Unit in Morigaon, Assam

  • Operated by Tata Semiconductor Assembly and Test Pvt Ltd.
  • Investment: Rs. 27,000 crore.
  • Capacity: 48 million units per day.
  • Segments Covered: Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

Semiconductor ATMP Unit for Specialized Chips in Sanand, Gujarat

  • Established by CG Power in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand.
  • Investment: Rs. 7,600 crore.
  • Capacity: 15 million units per day.
  • Segments Covered: Chips for consumer, industrial, automotive, and power applications.

What are semiconductor chips?

  • Semiconductors are materials with a conductivity between conductors and insulators.
  • They can be pure elements like silicon or compounds like gallium arsenide.
  • Semiconductor chips are the basic building blocks of modern electronics and information technology products.
  • They are essential components in automobiles, household gadgets, and medical devices.
  • The COVID-19 pandemic has increased the demand for semiconductor chips as more activities shift online.
  • Shortages of semiconductor chips have caused disruptions in various industries, leading to pent-up demand and subsequent supply shortages.

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Need for Promoting Semiconductor Industry:

  • Semiconductor chips are essential for the functioning of electronic products and drive the development of information and communication technologies (ICT).
  • They play a crucial role in critical infrastructures, such as communication and power transmission, with implications for national security.
  • Developing the semiconductor industry has a multiplier effect across various sectors of the economy and strengthens integration into the global value chain.
  • Only a few countries, including the United States, Taiwan, South Korea, Japan, and the Netherlands, dominate the semiconductor manufacturing industry.