In a significant development for Bharat’s semiconductor industry, the Union Cabinet approved three semiconductor plant proposals, with two to be set up by the Tata group. The approval came on March 1, leading to a positive market response, notably seen in Tata Investment Corporation shares, which surged by 4 per cent in early trade.
The two semiconductor plants by the Tata group will be established in Gujarat and Assam, with an estimated total investment of Rs 1.26 lakh crore. Alongside Tata, CG Power, owned by the Murugappa Group, will set up a plant in Gujarat. According to IT Minister Ashwini Vaishnaw, construction on these plants is expected to commence within 100 days of approval.
Tata Investment Corporation, a non-banking financial company or NBFC known for investing in diversified portfolios, including those of the Tata group, saw its shares trading at Rs 7,585 on the National Stock Exchange, marking a 4.2 per cent increase from the previous day’s close.
The approval marks a pivotal decision by Prime Minister Narendra Modi to establish a semiconductor fabrication plant in Bharat. The first commercial semiconductor fabrication plant, to be set up by Tata and Powerchip from Taiwan, will be located in Dholera. Additionally, Tata Semiconductor Assembly and Test Pvt Ltd received approval for its chip assembly and testing unit in Assam, with an investment of Rs 27,000 crore.
Tata Electronics Pvt Ltd, in partnership with PSMC from Taiwan, will establish the country’s first fabrication plant with a capacity of 50,000 wafers per month, investing Rs 91,000 crore in Dholera, Gujarat. PSMC, renowned for its expertise in logic and memory foundry segments, brings invaluable experience to the project.
The chips produced in these fabrication plants will feature 28 nm technology and cater to various sectors including electric vehicles, telecom, defence, automotive, consumer electronics, display, and power electronics. These high-performance computer chips will focus on power management, addressing the needs of modern technologies.
The second unit in Assam, set up by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), will be established with an investment of Rs 27,000 crore in Morigaon. TSAT is spearheading the development of indigenous advanced semiconductor packaging technologies, including flip chip and ISIP technologies.
The approval comes after Tata Investment Corporation witnessed a 30 per cent surge over the past month, driven by reports of the Tata Group’s bids to establish semiconductor plants.
