India’s Government has approved the construction of three semiconductor plants, marking a crucial step towards advancing the semiconductor manufacturing sector in India.

The decision aligns with India’s Programme for Development of Semiconductors and Display Manufacturing Ecosystem in 2021.

The three approved semiconductor units will be located in Dholera, Gujarat and Assam. Construction for all three units is scheduled to commence within the next 100 days.

Tata Group, an Indian conglomerate, is set to play a pivotal role in this transformative initiative.

Tata Electronics Private Limited will collaborate with Powerchip Semiconductor Manufacturing from Taiwan to establish a semiconductor fabrication plant in Dholera, Gujarat.

This facility, which will receive $11m (Rs911.61m) of investment, will focus on producing high-performance compute chips with 28-nanometre technology.

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Tata Semiconductor Assembly and Test (TSAT), another entity under Tata, will set up a semiconductor unit in Morigaon, Assam, with an investment of $3m.

With a daily capacity of 48 million, this unit will cover various segments including automotive, electric vehicles, consumer electronics, telecom and mobile phones.

Furthermore, CG Power will establish a semiconductor unit in Sanand, Gujarat, with an investment of $916,739.

The three units are expected to create 20,000 direct jobs in advanced technology and 60,000 indirect jobs, contributing to various sectors.

The Union Cabinet previously approved Micron’s proposal to set up a semiconductor unit in Gujarat in June 2023.