Synopsis
On March 6, the India Semiconductor Mission, Tata Electronics, and Tata Semiconductor Manufacturing signed a fiscal support agreement for India's first chip fabrication unit in Dholera, Gujarat, marking a crucial step in enhancing domestic semiconductor production and technological self-reliance.Key Takeaways
- India Semiconductor Mission, Tata Electronics, and Tata Semiconductor Manufacturing finalize an FSA.
- The agreement supports the establishment of India's first commercial chip fab in Dholera, Gujarat.
- Total investment exceeds Rs 91,000 crore with a production capacity of 50,000 wafers per month.
- The project is set to create over 20,000 jobs.
- Government pledges 50% fiscal support on eligible costs.
New Delhi, March 6 (NationPress) In a significant advancement for the domestic semiconductor sector, the India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have finalized a fiscal support agreement (FSA) aimed at establishing the nation's first commercial chip fabrication plant in Dholera, Gujarat.
This agreement was signed with the presence of Gujarat's Chief Minister Bhupendra Patel during the 'Semiconnect conference' held in Gandhinagar, marking a pivotal move towards enhancing India's technological self-reliance under the revamped framework for semiconductor and display manufacturing in the country.
The semiconductor facility by Tata Electronics in Dholera entails an investment exceeding Rs 91,000 crore and aims for a production capacity of 50,000 wafers per month (WSPM).
The Indian government, via the India Semiconductor Mission, has pledged 50 percent fiscal support on a “pari-passu” basis for eligible project expenses, showcasing a steadfast national resolve to foster a world-class semiconductor ecosystem within India.
This project is expected to create more than 20,000 direct and indirect skilled jobs, bringing in expertise from Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) to forge a strong technological partnership.
The facility is poised to cater to critical global semiconductor demands in sectors such as automotive, computing, communications, and artificial intelligence, thus transforming India from a technology consumer into a global manufacturing leader, as reported by the government.
Sushil Pal, CEO of the India Semiconductor Mission, reiterated that “the government is dedicated to the prompt disbursement of fiscal support for this project's implementation.”
“We trust that Tata Electronics will significantly strengthen the electronics value chain and greatly contribute to India’s broader objectives in this domain,” he added.
Dr Randhir Thakur, CEO and MD of Tata Electronics, commented that this marks a historic achievement for both India and Tata Electronics in the quest to establish a semiconductor manufacturing sector in the country.
“The Fiscal Support Agreement (FSA) reinforces our collaboration with MeitY and ISM to fulfill the Prime Minister’s vision of producing chips for Viksit Bharat,” Thakur stated.
