Up To Five More Chipmaking Units Expected To Get A Nod In The Next 12 Months, Says IT Minister Ashwini Vaishnaw

On 23 June, Union Minister Ashwini Vaishnaw announced that the $10 billion capex-linked incentive scheme is expected to approve up to five additional chip manufacturing and packaging units.

A day after Micron's formal announcement of a $2.75 billion chip packaging unit in Gujarat's Sanand under the scheme, the IT Minister said that the plant will produce the first made-in-India chips within the next six quarters.

According to Vaishnaw, "At full capacity, Micron's chip unit in India will have a $1 billion turnover. It will also bring with it an ecosystem of at least 200 more component, chemical, and gas companies that are critical for the production of semiconductors."

He added, "The ecosystem that Micron will create will help spur more semiconductor plants in the country. The first one always takes more effort."

The government said on 23 June that the recent announcements made by companies like Micron, Applied Materials, and Lam Research during Prime Minister Narendra Modi's US visit are a "significant and meaningful milestone" in expanding the semiconductor ecosystem in the country.

During a briefing, Union Minister Rajeev Chandrasekhar said that the proposals are expected to catalyse the electronics and semiconductor ecosystem.