Semicon India Programme: How's India Powering Semiconductor Revolution

India is taking bold steps to cement its position in the global semiconductor industry. Under the Semicon India Programme, the government has approved several high-stakes projects aimed at building a self-reliant and cutting-edge semiconductor manufacturing ecosystem. These initiatives promise to transform India from a chip consumer to a significant player in the global supply chain.

TICE brings you a sneak-peak of these initiatives.

Setting the Stage for a Chip-Driven Economy

Semiconductors are the lifeblood of modern technology, powering everything from smartphones and laptops to automobiles and industrial machinery. Yet, India has long been a consumer rather than a producer in the global semiconductor supply chain. The Semicon India Programme aims to change this narrative, paving the way for India to become a manufacturing hub for semiconductors and semiconductor-related technologies.

Under this initiative, the government has approved multiple high-impact projects, each tailored to bridge critical gaps in India’s semiconductor ecosystem. Here’s a closer look at the flagship ventures driving this transformation.

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Tata Electronics: The Dual Pillars of Semiconductor Manufacturing

1. Semiconductor Fab Facility

• Investment: A staggering ₹91,526 crore has been allocated to establish a state-of-the-art semiconductor fabrication plant.

• Collaboration: In partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), Tata Electronics Private Limited (TEPL) is leveraging PSMC’s expertise—honed across six operational semiconductor foundries in Taiwan—to create a facility with a production capacity of 50,000 wafer starts per month (WSPM).

• Significance: This collaboration is a game-changer, introducing advanced manufacturing processes to India while reducing dependence on imports for critical semiconductor components.

2. OSAT Facility

• Investment: An additional ₹27,120 crore has been committed to developing an Outsourced Semiconductor Assembly and Testing (OSAT) facility.

• Technology: The project will utilize indigenous semiconductor packaging technologies, with a production capacity of 48 million units per day.

• Impact: As a crucial downstream component of the semiconductor supply chain, this facility will enhance India’s ability to assemble and test semiconductors domestically, reducing reliance on external players.

CG Power and Industrial Solutions: Strengthening the Value Chain

• Investment: ₹7,584 crore.

• Partnership: In collaboration with Renesas Electronics America Inc. (USA) and STARS Microelectronic (Thailand), this project aims to establish a cutting-edge OSAT facility.

• Capacity: Capable of assembling and testing 15.07 million units per day.

• Technology Providers: Renesas Electronics Corporation (Japan) and STARS Microelectronic (Thailand) are bringing their global expertise to enhance India’s assembly and testing capabilities.

• Scope: By creating a robust value chain, this initiative ensures that India not only manufactures chips but also excels in the critical processes that add value to semiconductor components.

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Kaynes Technology: Gujarat’s Semiconductor Ambitions

• Investment: ₹3,307 crore.

• Location: Sanand, Gujarat.

• Partnership: Collaborating with ISO Technology Sdn. Bhd. and Aptos Technology Inc., this project focuses on advanced semiconductor packaging solutions.

• Capacity: Specializing in Wire Bond Interconnect and Substrate-Based Packages, the facility will produce 6.33 million chips per day.

• Focus: This project underscores India’s commitment to innovation, bringing advanced semiconductor packaging technologies closer to home.

What This Means for India

These projects are not just about infrastructure or investment figures; they represent a paradigm shift. Together, they aim to:

• Reduce Dependency: By fostering local manufacturing and assembly, India is poised to cut down its reliance on semiconductor imports.

• Create High-Tech Jobs: The semiconductor sector is labor-intensive and highly specialized, promising to generate thousands of skilled jobs.

• Boost Innovation: Strategic collaborations with global technology leaders ensure that India remains at the forefront of semiconductor advancements.

• Strengthen the Economy: With semiconductors forming the backbone of countless industries, a robust domestic ecosystem will provide a ripple effect, driving growth across sectors.

The Road Ahead

While these initiatives mark a significant milestone, challenges remain. Building a self-sustaining semiconductor ecosystem requires continuous investment in research and development, talent cultivation, and infrastructure. However, with the government’s focused vision and the private sector’s active participation, India is steadily charting its path toward semiconductor self-reliance.

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The journey has just begun, but the stakes are high. As India’s semiconductor manufacturing capabilities grow, so too does its potential to become a global tech powerhouse. For a nation known for its IT services, the leap into semiconductor manufacturing could well define its next big chapter in the global technology narrative.

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