India Announces $15.2 Billion Investment in New Semiconductor Facilities with Tata and Renesas

On Thursday, India green-lighted the establishment of three semiconductor manufacturing facilities, with a collective investment of 1.26 trillion rupees ($15.2 billion), involving collaborations with notable companies such as Tata Group from India and Renesas from Japan. This initiative marks a significant step towards achieving India’s aspiration to become a leading force in the global electronics sector.

Construction of these facilities is slated to start within the upcoming 100 days, disclosed Ashwini Vaishnaw, the electronics minister. These units are destined to produce semiconductors for key industries such as defense, automotive, and telecommunications.

This development is a testament to Prime Minister Narendra Modi’s vision of positioning India as a primary source of semiconductors on the global stage, moving beyond initial challenges in the government’s effort to attract $10 billion in incentives for the sector.

Tata is set to collaborate with Taiwan’s Powerchip to develop a 910 billion rupees semiconductor plant in Dholera, located in Gujarat, as per Vaishnaw. Additionally, CG Power from India will join forces with Japan’s Renesas Electronics Corp and Thailand’s Stars Microelectronics to initiate a 76 billion rupees facility, also in Gujarat. Furthermore, a subsidiary of Tata, Tata Semiconductor Assembly and Test Pvt Ltd, is expected to establish a 270 billion rupees manufacturing unit in Assam, Vaishnaw announced.