India approves three chip plants with over $15 billion in investments to realize semiconductor ambitions

India has approved building three semiconductor plants with investments of more than $15 billion as the country aims to become a major chip hub.

"India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India," according to a government statement on Thursday.

India has ambitions to become a major chip hub on the lines of the U.S., Taiwan and South Korea, and has been courting foreign firms to set up operations in the country.

Tata Electronics will partner Taiwan's Powerchip Semiconductor Manufacturing Corp to build one of the fabrication plants in Dholera, Gujarat, with an investment of nearly $11 billion (Rs.91,000 crore), according to the statement.

PSMC provides chip design and manufacturing services in the logic and memory segments. It has six semiconductor foundries in Taiwan.

The factory will focus on the mature 28-nanometer technology, namely in industries such as automobiles, consumer electronics and defense. Mature technology refers to processes involved in making 28-nanometer or larger chips — generally considered legacy chips.

Tata Semiconductor Assembly and Test Pvt Ltd will set up the second plant in Morigaon, Assam, with an investment of $3.26 billion (Rs.27,000 crore), to develop "indigenous advanced semiconductor packaging technologies including flip chip and integrated system in package technologies" for automotive, EVs and consumer electronics segments.

CG Power, in partnership with Japan's Renesas Electronics Corporation and Thailand's Stars Microelectronics will set up the third factory in Sanand, Gujarat, specializing in chips for consumer, industrial, automotive and