India to gain 3 new chip fabrication units soon: Vaishnaw
Union IT minister, Ashwini Vaishnaw, on Tuesday announced plans to establish three new chip fabrication units in India. "In another few months, I can share that we will get at least three more units, fabricating advanced technologies of chips in the country," Vaishnaw said during the inauguration of the Advanced Micro Devices (AMD) design center in Bengaluru. This news comes on the heels of September's groundbreaking ceremony for India's first chip packaging unit, Micron Technology, located in Sanand, Gujarat.
Investment and location details
The investment for these three additional units is expected to range between $8 billion and $12 billion. Vaishnaw explained that the companies involved can choose their preferred locations and are currently in talks with state governments in Tamil Nadu, Karnataka, Telangana, Gujarat, and Uttar Pradesh. He expressed optimism that the locations would be finalized soon, with the total investment including both state and central subsidies.
Subsidies and Micron investment breakdown
Vaishnaw clarified that the subsidy policy applies uniformly to various units, including OSAT, fabrication, silicon, and different nanometer technologies like 24nm, 40nm, or 7nm. The construction of Micron's assembly, testing, marking, and packaging (ATMP) unit is underway with a proposed investment of $2.75 billion. This is the largest investment so far under the $10 billion India Semiconductor Mission (ISM) incentive scheme. Micron has committed $825 million, while state and central subsidies will cover the remaining costs.
Ecosystem development and focus on emerging sectors
The IT minister also noted that numerous ecosystem partners have joined since the first unit's construction began, including sub-state manufacturers, chemical suppliers, and PCBA companies. He highlighted the rapidly growing sectors of gallium nitride and silicon carbide, which serve industries such as telecom manufacturing, telecom equipment, electric vehicles, and consumer electronics. Vaishnaw emphasized the government's commitment to focusing on these sectors alongside silicon.
