Prime Minister Narendra Modi assured that the three chip manufacturing and assembling facilities in Gujarat and Assam will position India as a global semiconductor value chain.

He set the foundation stone as India’s first commercial semiconductor manufacturing factory by the Tata Group at Dholera, Gujarat.

Another two foundation stones were also laid forth by the PM for outsourced semiconductor and assembly testing (OSAT) units at Sanand in Gujarat and Jagiroad in Assam

“Today, we are creating history as well as taking a big step towards a bright future," Modi said in a virtual address.

Union Minister for electronics and information technology Ashwini Vaishnaw expressed his astonishment over the three foundation stones of Tata-Powerchip Semiconductor Corp., at Dholera, the Tata group's OSAT unit in Assam, and the CG Power-Renesas Group combine at Sanand were laid in a record-breaking 15 days.

“Since 1962, attempts have been made by various governments to bring semiconductor manufacturing to India. It has been made possible only in 2024. The semiconductor chips manufactured here in Dholera and those produced from Sanand and Assam will be used in cars, mobile phones and other electronic equipment, globally” Vaishnaw said.

The cabinet minister had given is nod to Tata for Tata-PSMC's Rs 91,000 crore commercial foundry, the Rs 27,000 crore Tata OSAT facility, and the Rs 7,600 crore CG Power-Renesas joint venture OSAT plant on February 29. With a combined capacity of 80 million chips from the three OSAT units and a monthly capacity of 50,000 wafer starts from the Dholera foundry, India currently has three OSAT units and one pure-play commercial foundry.

“It is definitely a pivotal moment and a very important day for us. It is very important for India to become a semiconductor nation. We will start commercial production from Dholera and Assam in late 2025 or early 2026. These plants will cater to a variety of sectors… automotive, power, electronics, consumer, and medical. There is a whole range of sectors which need chips,” Tata Sons chairman N Chandrasekaran said on the sidelines of the event.

The three projects' foundation-laying will facilitate India's long-standing goal of entering the commercial chip fabrication industry. India authorized a Rs 76,000 incentive program in December 2021 to entice international businesses to establish operations there, marking the country's first step towards creating a semiconductor ecosystem.