Acknowledging the significant role played by Micron's investment in catalyzing semiconductor manufacturing interest in India, Minister of State for IT Rajeev Chandrasekhar revealed that the government is currently assessing nine proposals related to semiconductor manufacturing. Chandrasekhar highlighted that among these proposals, two are for fabrication facilities (fabs), four for Outsourced Semiconductor Assembly and Test (OSAT), and three for compound fabs. These proposals, deemed of high quality, are currently in the analysis phase.
Speaking on National Startup Day, Chandrasekhar expressed optimism about the emergence of numerous startups in diverse sectors such as semiconductors, electronics, artificial intelligence, and high-performance computing in the near future. This aligns with the government's focus on fostering innovation and entrepreneurship in these burgeoning fields.
Tata group recently contributed to this momentum by announcing its plans to establish a semiconductor fabrication unit in Gujarat. Tata Sons Chairman N Chandrasekaran disclosed the group's exploration of opportunities to set up a substantial semiconductor fab facility in Dholera, Gujarat, during the Vibrant Gujarat Global Summit.
In a significant development, an MoU was signed between Ahmedabad-based Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Gujarat Knowledge Society during the same summit. The agreement aims to establish a semiconductor design ecosystem and talent development program for space and commercial technology.
Micron, a US-based semiconductor giant, made history by becoming the first company to announce a chip manufacturing plant in India last year. The plant, situated in Gujarat's Sanand, is anticipated to cost over $2.75 billion, with substantial financial support from both the central and state governments. Government estimates predict that the Micron unit in Sanand will generate up to 5,000 direct and 15,000 indirect job opportunities over the next five years. Underlining the government's commitment to promoting semiconductor manufacturing, Chandrasekhar mentioned the $10-billion production-linked incentive (PLI) scheme introduced in 2021, offering financial assistance to a. Additionally, various states have implemented their specific policies to encourage manufacturing activities in this domain.