As India’s first semiconductor wafer plant is all set to develop in Gujarat's Dholera, prime minister Narendra Modi is likely to lay the foundation stone for this ₹91,000 cr semiconductor plant project.

According to reports, PM Modi is likely to visit Dholera for the ceremony on Mar 12.

Tata Electronics Pvt Ltd and Taiwanese company Powerchip Semiconductor Manufacturing Corporation (PSMC) will jointly establish a plant, representing a cumulative investment of ₹91,000 cr.

This plant will manufacture 50,000 semiconductor wafers monthly. Such semiconductor chips are used in various sectors, including electric vehicles, telecommunications, defence, automotive, and power management.

Value chain production in India

The value chain for semiconductor production includes design, fabrication, assembling, testing, marking, and packaging (ATMP).

For the past two decades, India has been designing 70% of the world’s chips, but now, with the new wafer fabrication plant, Micron’s approval last year at Gujarat’s Sanand, the recently approved CGPower, and Japan’s ATMP plant, India will be producing the entire value chain of semiconductors.

Capacity of Dholera plant

Tata Group, with a monthly production capacity of 50,000 wafers, will manufacture chips for the power electronics, display driver, and microcontroller sectors, which can be used in the automotive, computer, data storage, communication, and artificial intelligence sectors.

Taiwan’s PSMC has the technology and production capacity for 28, 40, 55, 90, and 110-nanometer chips, and the company is currently leveraging its production advantage in wafer fabs in large quantities in Taiwan.

India’s imports to reduce

India uses ₹2.25 lakh cr $27 bn worth of semiconductors annually, out of which 95% are imported from Japan, Taiwan, USA, and China. 

It is estimated that by 2026, semiconductors worth $55 bn, or ₹4.5 lakh cr will be used in India, and there is a possibility of benefiting from indigenous production instead of imports.

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