Technology
Amit Mishra
Sep 23, 2024, 04:00 PM | Updated Sep 27, 2024, 05:10 PM IST
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In a significant boost to India's semiconductor ambitions, India and the United States have recently agreed to establish a joint semiconductor fabrication plant.
This new facility, dedicated to producing chips for national security, next-generation telecommunications, and green energy applications, marks India's latest step in its quest to become a global semiconductor powerhouse.
This development comes amidst India's accelerated efforts in the semiconductor sector, with multiple projects already underway. Let's break down the current state of India's semiconductor initiatives, focusing on two main types of facilities: fabrication plants (fabs) and assembly and testing units (ATMP/OSAT).
Overview
Total Planned Investment: Approximately Rs 1.50 lakh crore
Expected Daily Chip Production Capacity: 7 crore chips
Number of Projects: 7 (including the recently announced India-US joint venture)
Fabrication Plants (Fabs)
Fabs are facilities where semiconductor wafers are manufactured. India has plans for three fab units.
1. India-US Joint Venture "Shakti" Fab
Partners: Bharat Semi, 3rdiTech, and US Space Force -
Specialization: Infrared, gallium nitride, and silicon carbide semiconductors
Status: Recently announced; details are pending
2. Dholera Fab
Partners: Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC)
Investment: Rs 91,000 crore ($11 billion)
Capacity: Up to 50,000 wafers per month
Status: First batch of semiconductors expected by December 2026
3. Adani-Tower Semiconductor Fab in Navi Mumbai, Maharashtra
Partners: Adani Group and Tower Semiconductor (Israel)
Investment: $10 billion (Rs 83,947 crore)
Capacity: Phase 1: 40,000 wafer starts per month (WSPM), Phase 2: 80,000 WSPM
Status: Approved by Maharashtra government; awaiting ISM clearance.
Assembly and Testing Units (ATMP/OSAT)
ATMP (Assembly, Testing, Marking, and Packaging) or OSAT (Outsourced Semiconductor Assembly and Testing) facilities handle the final stages of semiconductor production.
1. Tata Electronics ATMP in Morigaon, Assam
Investment: Rs 27,000 crore
Capacity: Up to 48 million chips daily
Significance: First indigenous semiconductor assembly and testing unit in India
2. Micron Technology OSAT in Sanand, Gujarat
Investment: $2.75 billion
Significance: First project approved under the ISM in June 2023
Status: Expected first chip by mid-2025
3. CG Power ATMP in Sanand, Gujarat
Partners: CG Power (Murugappa Group), Renesas Electronics (Japan), Stars Microelectronics (Thailand)
Investment: Rs 7,600 crore
Capacity: 15 million chips daily
4. Kaynes Semicon OSAT in Sanand, Gujarat
Investment: Rs 3,307 crore
Capacity: 6.3 million chips daily
Status: Approved by Union Cabinet in September 2023
Government Initiative
All these projects are part of the India Semiconductor Mission (ISM), a government initiative to boost domestic chip manufacturing. The government is now looking to increase the funding outlay for the second phase of its chip manufacturing incentive policy to $15 billion, up from $10 billion in the first phase.
As India seeks to position itself as a promising alternative to China amid tensions between Beijing and the West, the development of its semiconductor industry has become a top policy priority.
Recent approvals and advancements in these semiconductor units indicate that New Delhi's ambitious program to kick-start domestic chip manufacturing is gaining momentum after a sputtering start, potentially transforming India into a significant player in the global semiconductor industry.