Government Evaluating 9 Proposals on Semiconductor Manufacturing, Says MoS IT

Minister of State for IT, Rajeev Chandrasekhar, credited the Micron investment for sparking interest in semiconductor manufacturing in India. On Tuesday, he announced that at least nine semiconductor manufacturing proposals were undergoing analysis in the Ministry of IT.

Chandrasekhar stated, "We have received two fab proposals, four OSAT proposals, and three proposals for compound fabs, and all of them are very high-quality proposals which are currently undergoing analysis."

Speaking on National Startup Day, he also expressed that India would witness the emergence of many startups in areas such as semiconductors, electronics, artificial intelligence, and high-performance computing in the coming days.

Recently, the Tata group declared plans to establish a semiconductor fabrication unit in Gujarat. Tata Sons Chairman N Chandrasekaran announced the exploration of opportunities for setting up a significant semiconductor fab facility in Dholera, Gujarat, during the tenth edition of the Vibrant Gujarat Global Summit.

At the same event, an MoU was signed between Ahmedabad-based Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Gujarat Knowledge Society to create a semiconductor design ecosystem and a talent development program for space and commercial technology.

In the previous year, Micron, a US-based semiconductor giant, became the first company to announce a chip manufacturing plant in India. The plant, located in Gujarat’s Sanand, involves an investment of over $2.75 billion, with substantial support from the central and state governments.

The Micron unit in Sanand is anticipated to generate up to 5,000 direct and 15,000 indirect job opportunities over the next five years, according to government estimates. Under the $10-billion production-linked incentive (PLI) scheme introduced in 2021, the government provides financial assistance to semiconductor manufacturers. Additionally, various states offer incentives based on their specific policies to promote manufacturing.

BS