Key Step in Fiscal Support Pact Paves the Way for ₹91,000 Crore Semiconductor Project: Government
In a significant boost for India's domestic semiconductor sector, the India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have entered into a fiscal support agreement (FSA) for the nation's first commercial chip fabrication facility in Dholera, Gujarat.
GOVERNMENT ANNOUNCEMENT
3/6/20251 min read
This agreement was signed in the presence of Gujarat Chief Minister Bhupendra Patel during the ‘Semiconnect conference’ in Gandhinagar. It marks a crucial advancement in bolstering India’s technological self-sufficiency under the revamped program for semiconductor and display manufacturing within the country.
Tata Electronics’ semiconductor fabrication unit in Dholera represents a substantial investment of over Rs 91,000 crore, with a production capacity of 50,000 wafers per month (WSPM).
The government, through the India Semiconductor Mission, has pledged 50 percent fiscal support on a “pari-passu” basis (on equal footing) for eligible project expenses, showcasing a steadfast national commitment to developing a top-tier semiconductor ecosystem on Indian soil.
This initiative is anticipated to create more than 20,000 direct and indirect skilled jobs while bringing Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) expertise to India, forging a formidable technological partnership.
The facility aims to cater to critical global semiconductor markets, including automotive, computing, communications, and artificial intelligence sectors, thereby transforming India from a technology consumer into a global manufacturing leader, as stated by the government.
Sushil Pal, CEO of the India Semiconductor Mission, highlighted the government's commitment to the timely provision of fiscal support for this project's implementation.
“We are confident that Tata Electronics will play a key role in enhancing the electronics value chain and significantly contribute to India’s broader ambitions in this sector,” he stated.
Dr. Randhir Thakur, CEO and MD of Tata Electronics, described this as a historic milestone for both India and Tata Electronics in establishing a semiconductor manufacturing industry in the nation.
“The Fiscal Support Agreement (FSA) cements our collaboration with MeitY and ISM to actualize the Prime Minister’s vision of producing chips for a developed India,” Thakur remarked.
(IANS)
