India’s Semiconductor Sector Welcomes Three New Manufacturing Units.

Tata’s semiconductor chip fabrication unit in Gujarat was approved with an outlay of nearly INR 500 billion. Further, Tata Electronics’ plant for assembling and packaging of semiconductors at Jagiroad, Assam, was approved at a financial outlay of INR 400 billion; the Assam state government will contribute around INR 210 billion.

It is being reported by the Press Trust of India that Prime Minister Narendra Modi has approved the country’s first semiconductor fab facility – a collaboration between Tata and Powerchip Taiwan – that will be set up in Dholera, Gujarat. The fab plant will be built at a net investment of INR 270 billion and will produce 48 million chips a day.

Samsung Semiconductor India Research (SSIR) has inaugurated a semiconductor R&D facility in India at Bengaluru.

Two Karnataka-based semiconductor firms, Saankhya Labs, a subsidiary of Tejas Network, and Sensesemi Technologies are latest beneficiaries approved under the Design-Linked Incentive (DLI) Scheme. The announcement was made by the Ministry of Electronics and Information Technology (MeitY) at the Digital India FutureLABS Summit 2024.

Saankhya Labs is a wireless communication and semiconductor solutions company specializing in designing products and solutions tailored for broadband, satellite, and broadcast applications, covering areas such as 5G NR, Direct to Mobile (D2M) Broadcast, rural broadband connectivity, satellite communication modems for IoT applications, and multi-standard DTV modulators and demodulators.

Sensesemi will develop the Systems on Chip (SoC) for Internet of Medical Things (IoMT) and IoT devices, integrating MCU and wireless IP with an ultra-low power analog front end featuring AI inferencing IP. The goal is to advance India’s semiconductor capabilities by delivering connected SoC solutions for applications like smart wearables, the medical technology sector, and other connected devices.

Murugappa Group’s CG Power and Industrial Solutions Ltd. (CG Power) has formed a joint venture with Renesas Electronics America Inc. (Renesas) and Stars Microelectronics (Thailand) Public Co. Ltd. (Stars) to establish an outsourced semiconductor assembly and testing (OSAT) facility in Gujarat, India. CG has also inked agreements with Renesas Electronics Corporation, Japan, and Stars for technology, services, offtake, manufacturing, technology know-how sharing, and technical support. The JV formation awaits necessary approvals from the Ministry of Electronics and Information Technology (MeitY) and subsidies from central and state governments. The investment breakdown includes US$205 million from CG, US$15 million from Renesas, and US$2 million from Stars, with the total equity capital representing 92.34 percent, 6.76 percent, and 0.90 percent, respectively. In November, CG had disclosed plans to invest approximately US$791 million over five years for the OSAT venture.

Israeli chipmaker Tower Semiconductor is on the verge of securing an US$8 billion fabrication plant in India, reports the Indian Express. Tower Semi will need to indicate an investment partner according to experts, per the Scheme norms. Should the proposal gain governmental approval, it would mark the first instance of a top-10 global semiconductor company bringing genuine fabrication expertise to participate in India’s US$10 billion chip manufacturing initiative. The government is currently evaluating Tower’s proposal and aims to approve it before the implementation of the model code of conduct preceding this year’s general elections.