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Three upcoming fab units to cut import reliance

Semiconductor manufacturing facilities expected to generate 20,000 direct and indirect advanced tech jobs

Three upcoming fab units to cut import reliance
Cabinet briefing in New Delhi

NEW DELHI: The Union Cabinet on Thursday approved setting up three semiconductor-making units by firms, including Tata Group and Japan’s Renesas, at an investment of Rs 1.26 lakh crore as part of an attempt to cut India’s dependence on imports to meet requirements of chips.

The units which will make chips for sectors including defence, automobiles and telecommunications, will begin construction within the next 100 days, Telecom Minister Ashwini Vaishnaw told reporters after the cabinet meeting.

The three units will be set up under the ‘Development of Semiconductors and Display Manufacturing Ecosystem’ programme that provides government support of up to Rs 76,000 crore.

Tata Electronics Pvt Ltd will set up a semiconductor fab in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp at Dholera in Gujarat. The plant will have a capacity to produce 50,000 wafers per month and will involve an investment of Rs 91,000 crore.

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam, at an investment of Rs 27,000 crore. CG Power in partnership with Renesas Electronics Corp and Stars Microelectronics of Thailand will set up a unit in Sanand in Gujarat at an investment of Rs 7,600 crore.

In June last year, the Cabinet approved a proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat.

The approvals are part of the government’s ambitions to make India a chipmaker for the world and cutting reliance on countries like Taiwan.

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