India to become a global semiconductor hub: PM Modi

Syllad | The Rising MeghalayaMarch 13, 2024

Prime Minister Narendra Modi on Wednesday virtually laid the foundation stone for the Tata Group’s Rs 27,000 crore indigenous “Semiconductor Assembly & Test Facility” at Jagiroad in Morigaon district.

This apart, the Prime Minister also laid the foundation stones for the Tata-Powerchip Semiconductor Manufacturing’s “Semiconductor Fabrication Unit” at Dholera and that for the CG Power-Renesas outsourced assembly and test (OSAT) facility at Sanand, both in Gujarat.

The combined investment of the three semiconductor chip production/assembly facilities comes to around Rs 1,26,000 crores.

In his address, Modi said: “The projects announced today will help India to become a global semiconductor hub. These three semiconductor facilities will drive economic growth and foster innovation in the country.”

“The 21st century is electronically driven and it can’t be imagined without the semiconductor chips. During the first three industrial revolutions, India was lagging due to various reasons, but the country is moving with confidence towards achieving milestones in Industry 4.0,” Modi said

Speaking on the occasion, Union minister for railways, communications, electronics and IT Ashwini Vaishnaw said the Dholera plant was expected to start production by the end of 2026. India’s first semiconductor fabrication facility will be set up by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) at an estimated cost of Rs 91,000 crore.

The facility will be powered by renewable energy. A dedicated water supply will be provided through a Narmada river canal to the region, said officials present at the event.

The OSAT facility in Morigaon, Assam will be developed by Tata Electronics with an investment of Rs 27,000 crore.

“The plant will cater to electric vehicles, automotive, mobile phones, and power devices,” said Vaishnaw.

The Sanand OSAT facility will be set up by CG Power and Industrial Solutions Limited under the Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP), with a total investment of Rs 7,500 crore. All three projects are being incentivised under the India Semiconductor Mission which has an outlay of Rs 76,000 crore. 

Speaking from the site of the upcoming facility at Jagiroad in Morigaon district, Assam chief minister Himanta Biswa Sarma expressed his gratitude to the Prime Minister for the latter’s role in the establishment of the semiconductor assembly and test facility in the State by the Tata Electronics.

“Under Prime Minister Narendra Modi, ‘geographical barrier’ is no more a hindrance in the process of industrialization of Assam and the rest of the northeastern states,” Sarma said.

Expressing his happiness over Assam being covered under the first phase of the “semiconductor technology revolution” in the country, the chief minister said it is a manifestation of the fact that under the current dispensation at the Centre, the Northeast of India is getting its due attention and the region cannot be termed a “neglected region” anymore. 

“The people of Assam shall remain forever indebted to the Prime Minister for his role in the ushering of a new wave of development and progress in the state,” the chief minister added. 

Sarma exuded confidence that under the leadership of the Prime Minister, the nation will attain its rightful status of “Vishwa Guru” in days to come. 

The chief minister praised the Tata Group for coming forward with investments to the tune of Rs 27,000 crore and assured the multi-billion dollar conglomerate of doing everything within the capacity of the Government of Assam to provide a conducive industrial environment. 

Sarma said the investment by Tata Group in Jagiroad shall contribute greatly towards the process of economic growth of the state and the country. 

Referring to the foundation stone laying for the semiconductor unit at Jagiroad as an emotional moment for him, Sarma said it has the potential to provide direct employment to as many as 15,000 youth of the State and provide indirect employment opportunities to an equal number of job-seekers. 

He also appreciated the role of ministers Bimal Bora and Pijush Hazarika for their tireless efforts in ensuring the idea of having a semiconductor assembly and test unit at Jagiroad turns into a reality. 

He appealed to the people of Assam to shed the “culture” of strikes/andolans/hartals and embrace positivity and optimism so that Assam can attain its rightful position among the states of the Indian Union.

Union minister of communications and electronics & information technology Ashwini Vaishnaw, Union minister of state for skill development and entrepreneurship Rajeev Chandrashekhar, chairman of Tata Sons N Chandrasekaran joined through the video-conference mode. 

Assam Legislative Assembly deputy speaker of Numal Momin, ministers Pijush Hazarika, Bimal Bora, Jogen Mohan, Keshab Mahanta, along with a host of dignitaries were present at Jagiroad on the occasion.