Big push for chip biz, 3 new units okayed

Tribune News Service

Ajay Banerjee

New Delhi, February 29

In a bid to boost semiconductor production facilities, the Union Cabinet today okayed three proposals of private investment worth Rs 1,26,000 crore in the sector.

The government will provide incentives to manufacturers like was done when Micron, a US company, came to India. “Subsidy for three new units and Micron will now total Rs 59,000 crore,” said Union Minister for Electronics and Information Technology Ashwini Vaishnaw while talking to mediapersons.

Three new plants — two in Gujarat and one in Assam — will address multiple layers of the semiconductor market. The construction of the units, which will make chips for sectors including defence, automobiles and telecommunications, is expected to start within 100 days. “We expect production to start in three years,” said Vaishnaw, adding that plant set up by Micron in Gujarat would start deliveries around the year-end. Vaishnaw said Indian electronics manufacturing industry would grow to $300 billion in a few years up from the $105 billion now.

Mohali SCL plan ready

The government on Thursday said a Rs 10,000-crore modernisation plan for the SCL, Mohali, was ready. “We will be selecting a partner,” said Ashwini Vaishnaw, adding that the SCL would be the R&D centre and training centre. The proposal would be sent to the Cabinet in three months, he said.

The biggest proposal okayed is for the first semiconductor fabrication (fab) facility in the private sector with capacity to produce 50,000 wafers a day and will results in output of 300 crore chips – used in almost all electronics.

Tata Electronics Private Limited will set this unit at Dholera, Gujarat, in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. It will entail an investment of Rs 91,000 crore. The PSMC has six semiconductor foundries in Taiwan.

For the first time, India will foray to make high-performance computer chips with 28 nm technology. It will also make chips with 50 nm and 90 nm technologies. At present, the fabrication facility at the Semi-Conductor Laboratory, Mohali, produces chips of various sizes.

The second project is in Assam. Tata Semiconductor Assembly and Test Pvt Ltd will set up a semiconductor unit in Morigaon, Assam, in collaboration with two US-based conglomerates at an investment of Rs 27,000 crore.

In the third project, CG Power in partnership with Renesas Electronics Corp and Stars Microelectronics of Thailand will set up a unit at Sanand in Gujarat at an investment of Rs 7,600 crore.

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