The Indian government has approved three proposals to build semiconductor manufacturing plants in the country worth a combined 1.26 trillion rupees ($15.2 billion).

The successful applications belong to Tata Group, Powerchip (PSMC), and a joint venture between CG Power, Renesas, and Stars Micro.

India semiconductor
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In comments reported by Reuters, India's electronics minister Ashwini Vaishnaw said construction will begin on the plants within the next 100 days, and that the facilities will be used to manufacture and package chips for a number of industries, including defense, automotive, and telecoms.

"This is a big decision for the country and a key accomplishment towards making India a self-dependent country," Vaishnaw said.

Tata Group has plans to build two plants, one in partnership with Powerchip in Gujarat state's Dholera and a second solo effort in the eastern state of Assam.

The joint effort will be worth 910 billion rupees ($11bn) and see a plant built with the capacity to produce 50,000 12-inch wafers per month, while the standalone project will see the Tata Semiconductor Assembly and Test arm of Tata establish a chip packaging plant worth 270bn rupees ($3bn).

Gujarat will also be home to the CG Power, Renesas, and Stars Micro joint venture, which will see a 76bn rupees ($92 million) chip packaging plant built in the state.

Both joint ventures are expected to create 20,000 new jobs in their respective regions.

The approvals come three weeks after it was first reported that the Indian government had received 18 proposals for the construction of semiconductor fabs as a result of schemes aimed at boosting semiconductor manufacturing in the country.

These schemes include the Modified Programme for Semiconductors and Display Fab Ecosystem, an 828 billion rupee ($10bn) scheme that was authorized by the Indian government in December 2021. The program allows companies to apply for up to 50 percent of capital costs for eligible semiconductor and display manufacturing projects.

In addition to these three newly approved fabs, the Indian government has given the green light to an ATMP (assembly, testing, marking, and packaging) facility by Micron Technology.

In January 2024, it was announced that Foxconn had entered into a joint venture with HCL Group to set up an outsourced assembly and testing (OSAT) facility in India.